deakin university annual reportdeakin university 2004 annual report 3 there is a great deal to...

Deakin University

annual report

Deakin

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ort 2

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2004

Report of operations and audited financial statements for the year ended 31 December 2004

22 March 2005

The Honourable Lynne Kosky MP

Minister for Education and Training

Dear Minister,

I have pleasure in presenting to you, on behalf of the Deakin University Council, the Deakin University Annual Report 2004.

This Annual Report was approved at a Council meeting held on 22 March 2005.

Yours sincerely,

Mr Richard Searby QC

Chancellor

MissionDeakin University’s teaching and learning, its research, its partnerships and its international programs will be:

> Relevant,> Innovative, and> Responsive.

Deakin will be recognised as Australia’s most progressive University.

Core commitmentsDeakin University has three core commitments that shape its distinctive position in higher education in Australia. In pursuing its mission and goals, Deakin takes account of its core commitments to:

> Rural and regional engagement,> Continuing education and life-long

learning, and> Equity and access for individuals and

groups who might not otherwise enjoy the benefits that flow from participation in higher education.

Report of operations 1

The year in review 3

Establishment of the University 4

Objectives 5

Strategic directions 5

Teaching and learning 6

Research and research training 10

Internationalisation 12

Recruiting and retaining staff 13

Community responsibilities; rural and regional engagement 16

Communication, marketing and ‘positioning’ 18

Resources, infrastructure and services 20

Corporate governance 26

Procedural and legislative compliance matters 44

Audited financial statements 49

Compliance index 88

Contents

Report of operations

Professor Sally Walker outside the Geelong Waterfront campus

3Deakin University 2004 annual report

There is a great deal to reflect on in a year that was dominated by substantial changes to Australia’s Higher Education System and a quality audit of Deakin University by the Australian Universities Quality Agency. Deakin’s response to these and other challenges is characteristic of a university that embraces opportunities and has a strong, shared sense of purpose.

Deakin seeks to be recognised as Australia’s most progressive university. Anyone who has an interest in higher education should see Deakin as an early adopter of new initiatives, as welcoming the opportunities that change presents, as constantly seeking to advance as a relevant, innovative and responsive university.

In February Deakin was the first university to announce its response to the higher education reforms in relation to the setting of student contribution rates. Deakin adopted a principled approach to setting these rates designed to recognise the distinctive way it can advance the interests and needs of Victoria and Australia.

During the year Deakin pursued a number of strategies to further its core commitments: to equity and access; to rural and regional engagement; and to lifelong learning and continuing education. Deakin won extra Commonwealth supported student places in nursing, education and occupational therapy and for Indigenous student education. These additional places will assist in addressing critical skills shortages in rural and regional areas. A scholarship program was also introduced to advance Deakin’s core commitments.

Deakin’s preparations for the AUQA Audit were exhausting, and, at times, the University’s honest and diligent process of critical self-review was difficult. Throughout the process, staff demonstrated an obvious commitment to ensuring a good outcome. The Audit visit took place during October and Deakin is already enjoying sustained benefits from the constructive approach it adopted.

Deakin continued to improve its research outcomes and is one of Australia’s fastest growing universities in terms of research performance. Paradoxically this outcome means that Deakin is the university most disadvantaged under the funding cap that applies to Commonwealth research grants to institutions.

The year in review

A number of Deakin staff received external recognition for their achievements. Professor Peter Hodgson was awarded a prestigious Federation Fellowship by the Australian Research Council; Dr Matthew Barnett received a QE11 Fellowship; and Deakin staff were short-listed in three categories of the Australian Awards for University Teaching.

Staff satisfaction reached its highest level since it was first measured in 1998. Deakin embarked upon a major recruitment drive, increasing the overall size of its workforce by more than 200 staff. Appointing more academic staff in areas of strategic importance was a particular priority to address Deakin’s student to staff ratio. Pleasingly, the new staff appointments contributed to the dramatic decline in Deakin’s 2004 student staff ratio. A significant number of professorial appointments were made as part of plans to expand the proportion of staff in academic leadership positions.

Work continued on improvements to the University’s physical infrastructure. Masterplans were approved for the Melbourne campus at Burwood and the Geelong Waterfront campus. The Central Precinct development on Deakin’s Melbourne campus at Burwood is ahead of schedule and will open in 2005, providing much needed additional teaching and student support space. Deakin commenced a major refurbishment of the Science Building at the Geelong campus at Waurn Ponds to address pressing occupational health and safety concerns.

Since introducing a new integrated planning and budget model in 2003, Deakin has made considerable progress in ensuring that strategic priorities and operational targets are addressed at every level within the institution. Deakin is moving forward with confidence and has proactively embraced the opportunities that a reformed higher education sector brings. The following sections of this Annual Report document Deakin’s performance against its seven strategic planning goals, provide the necessary legislative and compliance information and contain the audited financial statements as at 31 December 2004.

Professor Sally Walker

Vice-Chancellor

4 Deakin University 2004 annual report

Deakin University was established under the Deakin University Act 1974 (Vic). The Minister concerned is the State Minister for Education and Training.

For funding purposes and some aspects of the University’s operations, the relevant Minister is the Commonwealth Minister for Education, Science and Training.

On 1 August 1990, Deakin University at Geelong and the Warrnambool Institute of Advanced Education merged under the provisions of the Deakin University (Warrnambool) Act 1990 (Vic).

On 31 December 1991, Deakin University merged with Victoria College to form a new Deakin University under the terms of the Deakin University (Victoria College) Act 1991 (Vic).

Establishment of the University

Deakin University students during orientation week on the Melbourne campus at Burwood


Deakin’s Strategic Plan—Taking Deakin University Forward—sets out Deakin’s long-term goals and strategies designed to advance the University’s mission: to be recognised as Australia’s most progressive University. The Strategic Plan is reviewed every year and may undergo minor revisions, primarily in response to changes in the external environment.

The seven goals as defined in Taking Deakin University Forward, 2004, and performance in relation to them, are set out in the following pages.

Strategic directions

The objectives of Deakin University are set out in Section 5 of the Deakin University Act 1974 (Vic) as follows:

(a) to establish a university in the Geelong area

(ab) to maintain campuses of the University at Geelong, Warrnambool, Burwood, Malvern and such other place or places as are prescribed by the Statutes

(b) to provide tertiary education at the university level for students attending the University and to provide the opportunity for tertiary education at university level to all qualified persons whether within or outside Victoria by means of external studies programmes

(c) to arrange for the provision of study centres at appropriate places in or outside Victoria where students taking external studies programmes can have access to library and other study facilities and can be given tutorial and practical assistance

(d) to provide all such programmes of study as are prescribed by the Statutes and all such courses as are approved by the Academic Board from time to time

(e) to aid by research and other means the advancement of knowledge and the pursuit of the benefits of its practical application

(ea) to promote critical enquiry within the University and in the general community and

(f) to confer after appropriate assessment the several degrees of Bachelor, Master and Doctor and grant such diplomas and certificates as are prescribed by the Statutes.

Objectives


Deakin’s goal is:

To provide excellent teaching in relation to undergraduate, postgraduate and professional development programs of contemporary relevance that are available to students wherever they are located and developed in consultation with potential employers, industry, government and professional bodies.

Deakin’s priorities for 2004 in teaching and learning continued to focus on sustaining excellence through quality assurance and continuous quality improvement processes; recognising excellence and innovation; advancing the University’s commitment to equity and access by fostering student and graduate success; and promoting innovation through online teaching and learning. Good progress was made in all areas and most targets in the 2004 Operational Plan were achieved. In particular:

> A commitment to teaching excellence means that the provision of quality teaching and learning is highly valued and rewarded. In 2004 Deakin introduced a Graduate Certificate of Higher Education as part of an expanded program of academic professional development activities; allocated $1 million in strategic teaching and learning grants to support and provide incentives to further develop excellence in teaching; made five nominations for national teaching awards, three of which were short-listed; and achieved continued improvements in student ratings on the quality of teaching.

> Deakin was successful in securing 130 of the 859 new Commonwealth supported places made available to Victorian universities. Deakin’s bids were directed at addressing critical skills shortages in rural and regional areas and will provide extra opportunities in nursing, occupational therapy and education and provide further places for Indigenous students.

> Deakin introduced a scholarships program as part of measures to advance its core commitments to access and equity; continuing education and life-long learning; and rural and regional engagement.

> More than 300 Indigenous students were enrolled in 2004 in a range of postgraduate and undergraduate programs taught through Deakin’s Institute of Koorie Education in partnership with the faculties. In a special ceremony organised by the Institute of Koorie Education, Deakin celebrated the achievements of 41 Indigenous graduates, the largest number of students to graduate in any one year since the Institute was formed in 1992. Mr Alf Bamblett was awarded an honorary doctorate of laws in recognition of his outstanding services to Indigenous education and advocacy work for Aboriginal people.

> Deakin Online—a project to fully integrate Deakin’s online services and resources for students and staff—continued to progress during 2004. Deakin Studies Online, a learning-management system using WebCT Vista software was fully introduced; it replaced multiple software systems previously in use and is integrated with other University systems, including the student administration and human resources databases.

> Other online developments included allocation of funding in 2004 to assist faculties to develop two wholly online units; the continuation of the Online Teaching Fellowships, a program that has been externally recognised as innovative and successful in supporting staff to extend the use of online technologies in teaching; and the introduction of a requirement that all commencing undergraduate students will undertake at least one unit of study in a wholly online environment. Providing students with an online learning experience will assist with

Teaching and learning

1999 2000 2001 2002 2003

perc

ent

0

20

40

60

80

100

1999 2000 2001 2002 2003

perc

ent

0

20

40

60

80

100

postgraduate(course work)undergraduateall students


the development of independent learning skills and the capacity to successfully navigate new technologies, attributes that are actively sought after by employers.

Undergraduate student retention rates, 1999–2003 Student progress rates, 1999–2003

Course completions, 2001–20032001 2002 2003

Total 7113 6553 7045

By course type

Higher degree by research 109 123 115

Higher degree by coursework 657 895 1094

Other postgraduate 1849 1394 1154

Bachelor 3923 3863 4335

Other undergraduate 575 278 347

By faculty

Arts 1113 1066 1191

Business and Law 3027 2667 2763

Education 892 880 885

Health and Behavioural Sciences 1017 1050 1171

Science and Technology 1064 891 1036

By gender

Female 3669 3716 4002

Male 3444 2837 3043

> Further improvements were experienced in undergraduate progress and retention and graduate employment outcomes continued to improve. A survey of major employers of Deakin graduates was undertaken in 2004 and the results will influence future course development and improvements.


Student enrolments (persons) as at 31 March 2001–2004

2001 2002 2003 2004

Total 29040 29512 30752 31641

By faculty

Arts 6661 6370 6522 6061

Business and Law 9366 10271 10968 11603

Education 4193 4068 4101 4107

Health and Behavioural Sciences 3913 3877 3813 4342

Science and Technology 4634 4668 5001 5171

Cross-institutional 273 259 348 358

By course type

Higher degree by research 865 850 895 915

Postgraduate coursework 5185 6139 6872 7491

Undergraduate 22480 21962 22308 22394

Non-award, cross-institutional 510 561 677 841

By campus

Melbourne campus at Burwood 9420 11123 11911 11563

Melbourne campus at Toorak 1052

Melbourne campus at Rusden 1450

Geelong campus at Waurn Ponds 3772 3903 4053 4193

Geelong Waterfront campus 985 1014 1059 1148

Warrnambool campus 990 1009 1077 1147

Off campus 11808 11643 11442 11278

Offshore 615 820 1210 1260

Student load (EFTSL) by course type as at 31 March 2001–2004

2001 2002 2003 2004

Total 18834 19583 20460 21075

Course Type

Higher degree by research 599 606 633 660

Postgraduate coursework 1917 2378 2786 3135

Undergraduate 16197 16469 16861 17067

Non-award, cross-institutional 121 130 180 213


Student load (EFTSL) by funding source as at 31 March 2001–2004

Funding source 2001 2002 2003 2004

Commonwealth supported 15305 15320 14944 14469

Domestic fee paying (including fee waived) 1324 1728 2062 2261

International fee paying (including offshore) 1890 2259 3215 4097

Other fee paying 316 277 238 249

Total 18834 19583 20460 21076

Graduate satisfaction with teaching, 2001–2003 (Course Experience Questionnaire results)

Deakin National

2001 2002 2003 2001 2002 2003 % % % % % %

Good teaching 77 77 80 78 80 81

Generic skills 85 86 88 87 88 88

Overall satisfaction 91 91 90 89 89 90

Graduates in full time work, 2001–2003 (Course Experience Questionnaire results)

2001 2002 2003% % %

Deakin 84.4 78.3 79.5

All Victorian universities 83.1 79.9 80.4

All Australian universities 83.1 81.3 80.1

Note: Represents the number of Australian resident bachelor degree graduates who are in full time work as a proportion of those available for full time work.


Deakin’s goal is:

To have a vibrant culture of research with a critical mass of researchers associated with each major discipline providing every student with the experience of being taught by leading researchers, and to foster internationally competitive research groups in areas of strategic importance.

Deakin University is one of Australia’s fastest growing universities in terms of research performance. Since 1997, Deakin has focussed research activity into areas of strategic importance and this has significantly improved the University’s performance in all major research measures. Unfortunately, under the pernicious funding cap which applies to performance-based research funding, Deakin is poorly rewarded for its recent improved performance. This cap was designed to protect newer universities which it was thought might suffer from a move to performance-based funding for block grants. In Deakin’s case the funding cap has served to limit the University’s capacity to improve infrastructure in line with the growth in research activity.

Highlights from 2004 in research and research training included:

> The opening of the Geelong Technology Precinct that concentrates in a single research and development hub Deakin’s core research capabilities in biotechnology, nanotechnology, wine science and prototyping. The Geelong Technology Precinct was developed with significant support from the State Government’s Regional Infrastructure Development Fund and provides a focal point for developing the capability and capacity of Victorian research and innovation. It integrates high-level research capabilities with specialised research equipment and industrial scale infrastructure. Key tenants include the Victorian Centre for Advanced Materials Manufacturing, the National Centre for Cool Climate Wine Science, the International Fibre Centre, the Mobile Architecture and Building Environment Laboratory, and the Cooperative Research Centre for Cast Metals Manufacturing.

Research and research training

Researchers from Deakin’s Warrnambool campus ‘in the field’

2003200220012000

No. o

f com

plet

ions

Higher degree by research (HDR) completions, 2000–2003

30

0

60

90

120

150

2003 2004200220012000

EFTS

L

Higher degree by research student load, 2000–2004

100

0

200

300

400

500

600

700

800

20032002200120001999

$ M

illion

s

Total research income, 1999–2003

0

5

10

15

20

25


> The award of a Federation Fellowship to Professor Peter Hodgson. The Federation Fellowship is the most prestigious award offered by the Australian Research Council and it is designed to attract and retain the world’s best researchers in Australia. Professor Hodgson is one of only 25 researchers to be awarded a Federation Fellowship and it recognises that Professor Hodgson’s research group at Deakin is the leader in its field in Australia and one of the very best in the world.

> Matthew Barnett of the School of Engineering and Technology commenced a prestigious QE11 Fellowship which is funded from the Australian Research Council for five years.

> Deakin is involved in two successful Cooperative Research Centre (CRC) grants announced in late 2004. Deakin is the lead university in a new CRC for Advanced Automotive Technology and is a partner in the CRC for Cast Metals Manufacturing which received continued funding.

> An Institute of Biotechnology, known as BioDeakin, was established bringing together major groups of researchers involved in the areas of genetic causes of inherited diseases, genetic causes of diabetes and obesity and depression.

> The Sustainable Aquaculture Systems Facility was opened at Deakin’s Warrnambool campus. The Facility is part of a project funded through the Victorian Government’s Science, Technology and Innovation Initiative that utilises new technology in water filtration and recirculation to improve fish production and stock control.

> Deakin increased its external research income, retaining its position at 20th among Australian universities ranked by the amount of research income secured. This represents an improvement from 23rd position in 2001. Publications output continued to improve and Deakin increased its level of research activity generally.

2003 2004200220012000

EFTS

L

International student load, 2000–2004

International student load (EFTSL) as a percentage of total load as at 31 August 2000–2004

1000

0

0

2000

3000

4000

5000

2003 2004200220012000

perc

enta

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10

20

30

40

50


Deakin’s goal is:

To promote internationalisation throughout the University in a way that is valued by staff and students.

Through its internationalisation goal Deakin seeks to diversify its membership and foster a working environment in which the international dimension is automatically considered in all planning decisions of the University. Highlights from 2004 included:

> Continued strong growth in demand for international student places at each of Deakin’s campuses. International student load increased by 22% in 2004 to represent 22% of Deakin’s total student load as at 31 August, 2004. Despite this good performance, Deakin did not achieve its ambitious international student load targets in 2004 with the shortfall entirely attributable to decreases in the numbers of students taught through offshore teaching partners.

> A major review of the offshore teaching partnerships was undertaken in 2004 which resulted in significant changes to the procedures for establishing and monitoring partnerships. As part of these new measures, each of Deakin’s international partners was visited at least once by the Vice-Chancellor or her nominee. There was an increase in the number of overseas visits taken by senior staff to consolidate existing partnerships and establish new international linkages. The Chancellor presided at international graduation ceremonies held in Hong Kong, Malaysia and Singapore and attended the associated alumni functions.

> By working in partnership with the City of Warrnambool and through an incentives scheme, Deakin is actively encouraging the enrolment of international students at its Geelong and Warrnambool campuses. Over the past two years, international student load has more than doubled at Deakin’s rural and regional campuses.

> More than 200 students participated in an international study experience as part of their course, either at an exchange partner institution or by way of a short-term in-country study tour.

> Profile-raising initiatives were undertaken in key overseas markets to highlight Deakin’s academic program and research strengths. Major successes were achieved in developing new markets for Deakin’s flagship education programs.

> Contributions to public discussions of international significance included an international symposium on Iraq and the Challenges for Human Rights organised by Deakin University’s Centre for Citizenship and Human Rights and the Australian Iraqi Forum, and initiating the work of the World Health Organisation Collaborating Centre for Obesity Prevention.

Internationalisation


Deakin’s goal is:

To attract, retain and develop outstanding staff who are committed to the mission and goals of the University and to increase staff numbers in areas of strategic need by the responsible use of revenue growth.

During 2004 Deakin engaged in a major recruitment campaign to increase the number of academic staff employed in areas of strategic importance. New staff appointments made throughout 2004 produced a dramatic decline in Deakin’s student to staff ratio to its lowest level since 2000. Other highlights from 2004 included:

> Continued improvement in the level of staff satisfaction as measured by the Staff Survey. Deakin’s staff survey has been conducted every two years since 1998; the 2004 results were the most favourable recorded to date, revealing a level of staff satisfaction at Deakin which exceeded, for the first time, the benchmark figure for Australian universities. The survey uses a bivariate analysis where items are ranked by importance and performance. A further measure of the improvement in staff satisfaction is evident in the survey outcomes which produced no instances of statistically significant gaps between the importance and performance ratings.

> Administrative salary increases of 2.25% in April and a further 2.25% in October were paid during 2004 as lengthy negotiations over an enterprise bargaining agreement continued.

> Amendments were made to the academic staff promotions process in 2004; an encouraging increase in applications occurred and a higher proportion of applicants were successful than in previous years.

> A wide range of staff development programs were provided for academic and general staff based on developing three core staff capabilities in leadership and management, personal/interpersonal skills and academic/technical/specialist skills. More than 2700 attendances were recorded at these staff development programs.

> Deakin commenced a range of actions to facilitate the University obtaining Equal Opportunity for Women in the Workplace Agency accreditation as an Employer of Choice for Women. This included an external assessment of Deakin’s policies and practices against the accreditation criteria and the development of an action plan in response to this review.

Staff satisfaction survey results, 1998, 2000, 2002 and 2004

1998 2000 2002 2004% % % %

63 63 67 70

Recruiting and retaining staff


Workforce data

Staff numbers (persons) as at 31 December, 2003 and 2004

Academic General Male Female Total 2004 Total 2003

Geelong campus at Waurn Ponds 315 543 367 491 858 831Geelong Waterfront campus 59 338 176 221 397 339Melbourne campus at Burwood 479 550 382 647 1029 937Melbourne campus at Toorak 26 73 33 66 99 82Warrnambool campus 75 92 72 95 167 149Total* 954 1596 1030 1520 2550 2338

Australian Human Resources Institute 24 5 19 24 24Callista Software Services 109 78 31 109 93

*Includes DeakinPrime employee numbers

Equity and equal opportunity

Staff are appointed on the basis of merit in line with the University’s appointment policies and are required to conduct themselves in accordance with the Deakin University Code of Conduct.

Equity and equal opportunity strategies continue to be implemented across the University, including the mandatory requirement that all fixed-term and continuing staff members complete online training to raise awareness of responsibilities for preventing harassment and discrimination in the workplace.

The University submits an annual report to the Equal Opportunity for Women in the Workplace Agency to monitor the University’s progress in its implementation of equal employment initiatives. In 2005 the University will apply for accreditation from this agency as an employer of choice for women.

The University made a submission to the Department of Education, Science and Training (DEST) on changes to the Higher Education Equity Funding program, urging DEST to consider the effects on students of multiple disadvantages and to consider retaining women in non-traditional areas as a student equity group.

The Access, Equity and Equal Opportunity Subcommittee of the Planning and Resources Committee replaced the Equal Opportunity Advisory Committee in 2004.

Occupational health and safety

Deakin University has a commitment to providing a safe and healthy working environment for all staff, students, contractors and visitors. This commitment is enabled through the University’s Occupational Health and Safety (OHS) Management System.

The OHS Management System is the collective name given to the structures, planning, procedures, activities and resources the University applies to the improvement and maintenance of occupational health and safety performance and standards across the University.

The objective of the system is to create a positive culture within the University in relation to health and safety issues, promoting them as standard components of the University’s management systems.

The University’s OHS System comprises three elements:

> The University’s OHS Plan.

> Faculty and division health and safety plans. Each plan outlines how the organisational area will manage health and safety during the year, and covers elements such as OHS responsibilities, fire safety, first aid, training, safe working practices, risk assessment and health and well-being.


> The Service Management Plan of the OHS Unit located within the Human Resources Services Division. This includes the development and review of OHS policy and routine activities covering OHS advice and information, inspections, assessments, training, first aid, emergency planning, support for OHS committees, WorkCover and rehabilitation.

WorkSafe Victoria carried out a Dangerous Goods/Hazardous Substances audit across all Victorian universities in 2004. The audit confirmed the effectiveness of the University’s hazardous materials management systems.

During 2004 the University continued to implement a range of stress management initiatives including:

> adoption of family friendly policies

> implementation of the University’s Employee Assistance program

> provision of clearer expectations about work performance from managers

> implementation of strategies to clarify workloads

> improving management of contracts and contract staff

> implementing better exit and redundancy processes.

In addition, safety improvement has been a major consideration in various capital works programs, with more than $2 million having been allocated in 2004 to improve access, remove hazardous materials, increase fire safety and undertake necessary maintenance work on roofs.

Providing or organising training for managers, staff, health and safety representatives, first aiders and fire wardens is a major ongoing component of the OHS Unit’s annual program. More than 850 staff attended training sessions of various types during 2004, ranging from short 20–minute awareness presentations, to warden training, to several hours on risk assessment and managerial responsibilities relating to OHS matters.

The University’s emergency management system was further improved in 2004 by:

> purchasing equipment to support emergency management centres on each campus

> training of staff in the use of this equipment

> briefings of the University’s Senior Executive, Deans and Heads of Division

> revision of policies and procedures covering emergency management.

The number of lost time injuries and WorkCover claims continued to decline in 2004. Manual handling including overuse injuries remain the most common sources of staff injury at the University (13 claims), with staff being able to remain at work or return to work quickly in most cases. The University’s benchmarked health and safety performance continues to compare favourably to other universities.

Workcover indicators, 1997–2004

Lost time injury

frequency rate

WorkCover frequency

rate

Average lost time rate

< 12 months

Days lost per 100 full timeequivalence < 12 months

WorkCover costs per full time

equivalence < 12 months

Premium costs per full time

equivalence

WorkCover premium rate

as a % of remuneration

1997 7.26 16.54 14.3 17.2 $44.60 $190 0.38%

1998 5.20 14.79 12.9 11.2 $33.19 $328 0.58%

1999 5.07 12.56 17.9 15.3 $43.54 $409 0.75%

2000 5.89 12.95 30.5 30.2 $81.78 $594 0.95%

2001 4.09 10.50 45.5 31.4 $83.98 $408 0.65%

2002 4.03 10.00 63.7 42.8 $127.03 $460 0.70%

2003 4.00 7.55 43.0 29.4 $79.70 $503 0.72%

2004 2.41 4.76 23.4 9.3 $38.29 $452 0.68%


Deakin’s goal is:

To work in partnership with local communities in Burwood, Geelong and Warrnambool, and with governments, industry, business and the professions, to advance the interests of Victoria and Australia; to champion equity and access; and to be committed to providing: flexible teaching programs; distance and online education; workplace-based learning and continuing education; and research and teaching programs that advance the needs of South Central and South Western Victoria.

Performance in this area seeks to advance the goals for community responsibilities and rural and regional engagement as well as Deakin’s commitment to equity and access to higher education for individuals and groups who might not otherwise enjoy the benefits that flow from such participation. Highlights in 2004 included:

> An expansion of outreach activities to develop closer ties with secondary schools in South Central and South Western Victoria. This includes activities targeting schools with historically low transition rates to higher education; the introduction of student mentoring; promoting alternative admission pathways to University; and opening the University’s campuses to provide students and their parents with an experience of campus life.

> Delivering a community lecture program at Deakin’s campuses at Burwood, Geelong and Warrnambool to promote greater interaction between the University and its local communities.

> Attracting a greater proportion of Aboriginal and Torres Strait Islander students and students from rural or isolated areas than other Victorian universities. This reinforces Deakin’s core commitments to equity and access, to rural and regional engagement, to life-long learning and continuing education and the intersection of these commitments with Deakin’s goal in relation to community responsibilities; rural and

regional engagement. These aims were further advanced by the introduction of Deakin Rural and Regional scholarships and Deakin Life-long Learning scholarships, as well as awarding 164 Commonwealth Learning scholarships allocated to Deakin under the Backing Australia’s Future reforms.

> International recognition for DeakinPrime, an entity of Deakin University established to provide and promote education and development programs that are tailored to the needs of commercial organisations, government bodies, professional associations and industry. Through its partnership with Coles Myer, DeakinPrime was awarded the global Corporate University Xchange Alliance Award for the Coles Myer Institute learning and development model.

> Providing opportunities for staff to contribute to their communities. In 2004 more than 4300 participants were involved in Relay for Life events held on Deakin campuses, raising more than $450,000 towards cancer research on behalf of the Cancer Council Victoria.

> Partnership programs, particularly in health services, continued to grow in stature and importance. The partnership with the Department of Human Services (Barwon–South Western region) was recognised through receipt of a Vice-Chancellor’s award for excellence in the category of contribution to community. Through this partnership a jointly funded professorial position in Public Health was established in 2004.

Community responsibilities; rural and regional engagement


Equity group students as a proportion of domestic student enrolments, 2000–2004

Equity group 2000 2001 2002 2003 2004

Aboriginal and Torres Strait Islander—Deakin 1.1 1.2 1.2 1.5 1.3

Aboriginal and Torres Strait Islander—all Victorian universities 0.5 0.5 0.5 0.5 0.5

Non-English speaking background—Deakin 1.6 1.9 1.7 1.7 1.7

Non-English speaking background—all Victorian universities 4.1 3.8 3.3 3.4 3.7

Low socioeconomic status—Deakin 12.2 14.5 13.9 12.8 12.2

Low socioeconomic status—all Victorian universities 11.5 13.9 13.3 13.0 12.7

Disability—Deakin 1.7 1.7 2.8 2.7 2.2

Disability—all Victorian universities 2.8 2.7 2.9 3.0 3.0

Rural or isolated—Deakin 21.7 23.4 22.9 20.6 20.5

Rural or isolated—all Victorian universities 17.2 17.8 17.4 17.1 16.5

Mentoring program participant students from Presbyterian Ladies College show their gratitude to Dr Mardie Townsend (centre)


Deakin’s goal is:

To ensure that Deakin University’s distinctive contribution to higher education is recognised in a way that facilitates long-term sustainable growth.

Deakin’s distinctive contribution to higher education is conveyed through its relevant, innovative and responsive teaching and learning programs, its research, its partnerships and its international activities. In 2004:

> Deakin established a University Development function within the Marketing Division to facilitate high-level relationship building to assist the University to advance its mission and core commitments. Community reference groups for Geelong and Warrnambool continued to meet to provide advice and community input into the University’s planning processes and to assist in ensuring the relevance of Deakin’s activities to South Western and South Central Victoria. Academic advisory boards provided advice on the development and revision of courses.

> Baseline data was obtained in relation to Deakin’s brand association in key markets. This will assist with the evaluation of the success of future advertising and promotions strategies.

> An active schools liaison program was conducted throughout Victoria. The program involved visits to more than 100 schools as well as bringing similar numbers of school groups on to a Deakin campus. In 2004, special community information sessions were held to provide prospective students and their parents with information on the higher education reforms.

> The opening of the Geelong Technology Precinct and official launches of other research facilities during 2004 provided opportunities to showcase the contribution Deakin makes to its regions in research, especially in collaboration with industry partners.

Communication, marketing and ‘positioning’

> Initiatives introduced in 2003 to strengthen the University’s relationship with its local communities in Melbourne were continued. This included ‘Deakin Discussions’, the community lecture series that encourages members of the local community on to the University’s Melbourne campus at Burwood to discuss current topical issues with experts from among Deakin’s staff. The Vice-Chancellor continued to meet with local residents to outline Deakin’s campus development plans.

> The Bachelor of Education (Primary) retained its listing in the top ten courses based on Victorian Tertiary Admission Centre (VTAC) first preferences. The Bachelor of Education (Primary) and the Bachelor of Arts were among the state’s top ten courses based on all VTAC preferences.

> Deakin continued to provide extensive opportunities for study based on alternative teaching delivery methods and admission pathways, reflecting its commitment to life-long learning and continuing education. Approximately 40% of Deakin’s students study via distance education; a similar proportion of Deakin’s commencing students are non-school leavers and more than 45% of commencing students are more than 25 years of age.

Student enrolments (persons) by mode and type of attendance, 2002–2004

2002 2003 2004

No. % No. % No. %

Full time (on campus) 14517 49 15385 50 16226 51

Part time (on campus) 2532 9 2715 9 2877 9

Full time (off campus) 2150 7 2435 8 2461 8

Part time (off campus) 10313 35 10217 33 10077 32

Total 29512 100 30752 100 31641 100

Commencing undergraduate Australian resident students by basis for admission, 2002–2004

2002 2003 2004Basis for admission No. % No. % No. %

Complete secondary school 2892 64 2796 60 2740 61

Complete/incomplete tertiary/TAFE 1486 33 1737 37 1706 38

Mature age/prof. qual./employment experience 70 2 88 2 54 1

Other basis 54 1 30 1 17 0

Total 4502 100 4651 100 4517 100

Deakin University marketing vehicles parked outside the Geelong Technology Precinct at the Geelong campus at Waurn Ponds


Deakin’s goal is:

To ensure that the human, financial and capital resources of the University are managed efficiently and effectively; that infrastructure and services are provided to meet the University’s needs; and that profitable revenue is increased to strengthen Deakin’s immediate and longer term capacity to fulfil its mission, core commitments and goals.

A considerable focus for 2004 was implementing the most significant reforms to the Higher Education sector since the introduction of HECS in 1988. Major undertakings necessitated by the Backing Australia’s Future reforms included developing and obtaining Council approval for the University’s approach to the setting of fees; installing new versions of Callista, the University’s student management system; and developing a new internal budget allocation model. Other 2004 highlights included:

> Achieving the University’s revenue and profit targets for 2004. This included achieving 17% growth in fee paying student load and approximately 30% growth in fee paying revenue.

> Major new capital works programs were commenced as part of Deakin’s sustained investment in improving the physical infrastructure on each of its campuses. Footprints were developed for the International Centre and the Business Building on the Elgar Road side of the Melbourne campus at Burwood, and a substantial refurbishment of the Science Building began at the Geelong campus at Waurn Ponds.

> Deakin’s sound strategic and financial management was acknowledged by DEST during the Institution Assessment Framework Bilateral Discussion that took place in 2004. DEST paid tribute to the long-term management of the University in relation to its financial sustainability and, more recently, for having implemented a sound, integrated strategic planning and quality assurance process.

Resources, infrastructure and services

> Deakin participated in the 2004 national survey of customer satisfaction with Australian university libraries that is conducted every two years. Deakin’s customer satisfaction ratings improved in all categories surveyed, and Deakin’s 2004 results established new national benchmarks in relation to overall customer satisfaction, service quality and service delivery.

> Deakin Careers and Employment Service received the highest Australian customer satisfaction rating in a survey of final year students sponsored by the Australian Association of Graduate Employers and The Australian.

Work in progress on the construction of the Central Precinct at the Melbourne campus at Burwood


ResourcesCompulsory non-academic fees

Statement of fees and charges

Fees and charges for 2004 assessed as at 31 December 2004 $5,776,155

Fees collected as at 31 December 2004 $5,711,246

Fees and charges outstanding as at 31 December 2004 $64,909

Distribution of fees and charges for 2004

Fees and charges collected as at 31 December 2004 $5,711,246

Distributed to Deakin University Student Association Inc. (DUSA)—General Service Fees $4,443,814

Applied by Deakin University for student services and facilities $1,199,555

Undistributed fees and charges $67,877

DUSA

Funds received by DUSA, 2004

General service fee (from Deakin University) $4,443,814

Other income $1,568,905

Total $6,012,719

Expenditure associated with services funded by DUSA

Student Council $772,162

Administration and finance $1,301,954

Communication and marketing $620,623

Student rights $993,616

Leisure and direct services $2,429,378

Total $6,117,733

Deficit for 2004 $105,014

Note 1: Reconciliation of fees and charges collected with the amount distributed for years ended 31 December 2001 to 31 December 2003 inclusive was completed in April 2004. The final distributions were made in May 2004.Note 2: Reconciliation of fees and charges collected with the amount distributed for the year ended 31 December 2004 will be completed in April 2005 in accordance with the agreement between DUSA and the University.


Significant changes in financial position

The decision of the Commonwealth Government in 2004 not to make its customary December payment of 8% of next year’s funding, paying it instead in early January, has had a significant effect on the accounts. It has removed $13.5 million in revenue and operating profit from the 2004 result and also from the cash position at year end.

The University’s reported consolidated operating profit for 2004 is $10.8 million, compared to $21.4 million for 2003. Measured on the same basis as previous years, the University’s consolidated accounts would have shown an operating profit for 2004 of $24.3 million. Total revenue for the year was $379.0 million, $24.4 million above 2003. Measured on the same basis as previous years, without the impact of changes in grant timing, the University’s total revenue for 2004 would have been $392.5 million, an increase of $37.9 million or 10.7%, with the main items being:

> income from royalties, consultancy and contract research is $0.8 million below 2003, due to royalties from the licensing of the ‘Callista’ Student Management System ceasing in 2003

> consultancy and contract research is $0.9 million above 2003

> State Government financial assistance was $3.1 million above 2003 due to the receipt of competitive research funding

> student fees and charges income increased by $22.6 million due to higher course fees and larger enrolments, particularly from overseas fee paying students

> Commonwealth grants and HECS contributions were $7.4 million lower than in 2003 due to the timing of grant payments

> proceeds arising from the sale of land in the subdivision adjacent to the University’s Geelong campus at Waurn Ponds amounted to $2.7 million

> investment income was $2.5 million above 2003 due to higher levels of invested funds and improved performance of equity markets

> a reassessment of deferred superannuation contributions by the State Government reduced superannuation expense by $5.0 million with a consequent decrease also in 2004 income.

Total expenses were $368.2 million, $35.0 million greater than last year mainly due to additional employee benefits of $27.6 million, depreciation and amortisation expense of $1.6 million and repairs, maintenance and minor refurbishments of $2.9 million. The increase in employee benefits was significantly due to additional staff appointments. In addition, salary increases were made to all staff during the year, despite the enterprise bargaining agreement having expired.

Total assets have increased by $39.8 million from 2003. Cash and other financial assets were $17.6 million lower than last year mainly due to the timing of government grants and increased expenditure on capital works.

Following an independent review of carrying values, a net upward revaluation of $36.9 million was effected at 31 December 2004 for land and buildings. Cash expenditure on capital items amounted to $56.4 million, of which $33.8 million was for new building construction, predominately at the Melbourne campus at Burwood.

Total liabilities decreased by $8.5 million from last year due to lower levels of income in advance, and principal repayments on loans of $2.0 million were made. No new borrowings were undertaken in 2004. The University’s current ratio, a measure of its capacity to apply current assets to meet current liabilities, has declined from 1.62 to 1 to 1.37 to 1. The decrease is almost entirely due to the deferral of payment of the Government grant.

Proper use of funds

Public funds allocated to the University have been allocated through its budgetary process for the purposes specified by the Government or other public funding body. The University has no evidence that public funds have been used other than for the purposes specified.

Payments to consultants

During the year the University engaged no consultancy costing in excess of $100,000.

Consultancies costing less than $100,000 engaged during the year totalled 14. The total cost of these engagements was $397,973.


Five-year financial summary (consolidated)

2004 2003 2002 2001 2000$000 $000 $000 $000 $000

Operating income

Commonwealth Government grants 116,007 120,448 119,184 112,693 107,941

Higher Education Contribution Scheme (HECS) 61,977 64,979 61,867 58,730 56,246

Victorian State Government grants 6,798 3,735 1,858 884 458

Other 194,170 165,437 154,254 143,243 122,877

Total operating income 378,952 354,599 337,163 315,550 287,522

Operating expenses 368,199 333,162 326,477 302,580 279,440

Operating result before income tax 10,753 21,437 10,686 12,970 8,082

Balance sheet information

Current assets

Cash assets 68,598 87,072 55,485 40,238 46,122

Receivables 20,824 20,595 29,408 31,705 21,229

Deferred income–Government contribution for superannuation 12,610 12,241 12,956 11,621 11,044

Other 1,420 1,518 523 5,236 5,504

103,452 121,426 98,372 88,800 83,899

Non-current assets

Other financial assets 6,017 5,185 9,824 10,440 10,450

Property, plant and equipment 600,449 532,702 514,108 468,976 453,781

Deferred income–Government contribution for superannuation 118,256 123,605 132,104 133,840 132,481

Other 2,598 8,020 11,448 16,844 14,947

727,320 669,512 667,484 630,100 611,659

Liabilities

Payables 41,654 46,838 34,311 20,284 19,236

Interest bearing liabilities 27,889 29,969 31,819 36,641 37,030

Provision for employee entitlements 35,535 31,770 31,518 29,217 30,644

Deferred employee benefits for superannuation 130,866 135,846 145,060 145,461 143,525

Other 142 142 0 0 0

236,086 244,565 242,708 231,603 230,435

Net assets 594,686 546,373 523,148 487,297 465,123

Total equity 594,686 546,373 523,148 487,297 465,123


Infrastructure

Environmental initiatives and performance

Deakin University is committed to Environmentally Sustainable Design (ESD) in the design and construction of its buildings, that commitment being articulated in University policy and procedure relating to the management of physical facilities. Deakin University has documented a set of ‘Design Standards for Facilities’ which specifies design and construction elements to the finest level of detail. ESD is a core objective of the Design Standards which include the following goals:

> energy minimisation

> optimal use of natural light

> minimal chemical usage for cleaning and maintenance

> minimise water use

> space use optimisation.

A strong partnership continues between Deakin’s Buildings and Grounds Division and the School of Architecture and Building. For some time, the School’s Built Environment Research Group (BERG) has been involved in the ESD of all major projects. The Mobile Architecture and Building Environment Laboratory (MABEL) is also involved in the ongoing operation, testing and improvement of the performance of buildings.

Major projects underway in 2004 that embody the principles of ESD are:

> the Architecture Studio at the Geelong Waterfront campus—this project also received some funding support under the Victorian Solar/ Innovation initiative in 2004 and was completed in 2004

> the Central Precinct and the International Centre and Business Building (under construction) at the Melbourne campus at Burwood

> the Geelong Science Building refurbishment at the Geelong campus at Waurn Ponds (in progress).

Campus masterplans also embody ESD principles as a core objective. A masterplan for the Geelong Waterfront campus was completed in 2004.

In-house construction management of large projects has provided an opportunity to develop environmentally sensitive construction practices. The following initiatives were implemented in 2004:

> utilisation of recycled material

> restricted use of polystyrene foam

> commencement of waste separation

> site run-off management

> site environmental plans developed and implemented for each major construction site

> design incorporating construction noise minimisation features.

Deakin’s Campus Maintenance and Operations group continue to investigate and implement new environmental initiatives. Environmental improvement opportunities developed in 2004 include:

> mechanical plant upgrades to more efficient systems

> planned replacement of large hot water units with small local instantaneous systems

> undertaking water use audits to target opportunities for improvement

> additional service use metering to enable consumption data to be critically analysed

> revegetation of significant areas with native and indigenous plants.


Services

Nature and range of services

The University provides higher education for suitably qualified Australian and full fee paying students through on campus and off campus learning modes in which the place, time and mode of study are flexible.

The University operated across five campuses in 2004: the Geelong campus at Waurn Ponds, the Geelong Waterfront campus, the Melbourne campus at Burwood, the Melbourne campus at Toorak, and the Warrnambool campus. Academic studies were coordinated through the faculties of:

> Arts

> Business and Law

> Education

> Health and Behavioural Sciences, and

> Science and Technology.

Programs are available at undergraduate and postgraduate levels covering the disciplines in these faculties and including professional courses, mid-career professional development courses and postgraduate studies by coursework and research.

DeakinPrime provides, or promotes, education and development programs that are tailored to the needs of commercial organisations, government bodies, professional associations and industry groups. Award courses promoted by DeakinPrime are awards of the University.

In summary, Deakin University provides services to undergraduate and postgraduate students in award and non-award courses. The professions, industry and government utilise the University’s academic and other expertise through its professional development and continuing education programs, its teaching and its research and consultancies.

Facilities at the National Centre for Cool Climate Wine Science at the Geelong campus at Waurn Ponds

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Corporate governance

Organisational structure


Senior officers

Chancellor

Mr R.H. Searby QCMA Oxon

The Chancellor is the titular and ceremonial head of the University and is the chair of the University’s governing body, the Council.

Vice-Chancellor

Professor S.A. WalkerLLB(Hons) LLM Melb

The Vice-Chancellor is responsible to the Council for the academic and administrative affairs of the University and for maintaining and promoting the efficiency and good order of the University.

Vice-President (Administration)

Mr R.H. ElliottBSc MEd Melb

The Vice-President (Administration) is the head of the administration of the University, responsible to the Vice-Chancellor for the provision of administrative and financial services.

Deputy Vice-Chancellor (Academic)

Professor J. RosenbergBSc(Computer Sc) PhD Monash

The Deputy Vice-Chancellor (Academic) is responsible to the Vice-Chancellor for the general superintendence and good governance of the principal academic activities of the University.

Deputy Vice-Chancellor (Research)

Professor P.A. HamiltonBSc PhD DSc Tas

The Deputy Vice-Chancellor (Research) is responsible to the Vice-Chancellor for the development and enhancement of research within the University.

Pro Vice-Chancellor (International)

Mr E.J. MeadowsBA(Hons) Syd, CertAdvMgt Wharton

The Pro Vice-Chancellor (International) is responsible to the Vice-Chancellor for the international relations of the University, the development of its international programs and its international marketing and recruitment.

Pro Vice-Chancellor (Online Services)

Professor B. Corbitt (to 22 October 2004)BA(Hons) DipEd Melb, GDipCareers VicColl, MEdStuds PhD Monash

The Pro Vice-Chancellor (Online Services) is responsible to the Vice-Chancellor for the integration of systems that support Deakin’s commitment to online support for teaching and learning.

Please note: This position was subsumed in the portfolio of the Deputy Vice-Chancellor (Academic) after 22 October 2004.

Pro Vice-Chancellor (Rural and Regional)

Professor R. WallisDipEd BSc MSc Monash, GDipEdStud C Sturt, GCertMgt S Qld, PhD PWU

The Pro Vice-Chancellor (Rural and Regional) is responsible to the Vice-Chancellor for the strengthening of Deakin’s work in partnership with local communities, governments, industry, business and the professions.

Chief Executive Officer, DeakinPrime

Mr K. Selway BBus(Mktg) Chisholm, GDipMgt VUT

The Chief Executive Officer of DeakinPrime is responsible for the University’s education and commercial services to corporations and professional societies.

Director of Marketing

Dr I. Irvine (from 19 January 2004)BSc Glas, GDipAdmin Canberra, DipEd PhD Melb

The Director of Marketing is responsible to the Vice-Chancellor for marketing, publications, community liaison, media, alumni, database marketing, government relations/protocol and fundraising.

Please note: The title for this position was changed to Pro Vice-Chancellor (Development) on 16 December 2004.


Dean of Arts

Professor J. BeaumontBA(Hons) Adel, PhD London

Dean of Business and Law

Professor P. ClarkeLLB West Aust, LLM(Hons) Auck

Dean of Education

Professor S. Grundy BA(Hons) Qld, MA West Aust, PhD Murd

Dean of Health and Behavioural Sciences

Professor J.C. CatfordMA Camb, MSc Lond, MB BChir Camb, DM S’ton

Dean of Science and Technology

Professor R. Russell BSc(Hons) Tas, PhD ANU, DSc Tas

Deans of faculties, subject to the general superintendance of the Vice-Chancellor, are responsible to the Council for the general administration of their faculties.

Executive Director Learning Services and University Librarian

Ms S. McKnight (to 6 August 2004)BBus QIT, MPubAdmin Qld

Acting Executive Director Learning Services and University Librarian

Ms H. Livingston (from 7 July 2004)BA Monash, GDipLib RMIT

The Executive Director Learning Services and University Librarian is responsible to the Deputy Vice-Chancellor (Academic) for the leadership, management and strategic planning for Learning Services, which encompasses the Library, the Teaching and Learning Support Unit and Learning Resources.

Director of Research Services

Ms A. HadfieldBA Macq, MSc Syd

The Director of Research Services is responsible for support services to the Deputy Vice-Chancellor (Research) including advice on policy relating to all aspects of research and research training; developing opportunities for external research funding; and increasing the competitiveness of researchers obtaining external funds.

Executive Director of Deakin International

Ms B. HudsonBEd West Aust, GDipLangStud WACAE, MEd Edith Cowan

The Executive Director of Deakin International is responsible to the Pro Vice-Chancellor (International) for the management of Deakin’s international program, international student support, Education Abroad and manages the Deakin University English Language Institute (DUELI).

Details of indemnity for members of Council and senior officers

The University maintains a comprehensive insurance cover, reviewed annually, including Directors’ and Officers’ Liability Insurance policies for members of Council, members of committees of Council and directors and officers of the University and certain entities affiliated with the University.


Corporate governance statement

This statement summarises governance practices that were in effect in 2004, including those introduced during that year.

The University is established under the Deakin University Act 1974 (Vic) with Council as its governing authority. The Act provides that Council is responsible for the “entire direction and superintendence of the affairs, concerns and property of the University”, including conferring degrees and granting diplomas of the University; the appointment of the Vice-Chancellor and staff of the University; making, amending or revoking University legislation; ensuring that all University funds are used solely for University purposes; entering into and performing financial arrangements; dealing with property and forming and participating in certain business entities.

Functions of the University Council

Council has determined the following as being its primary functions

1 The strategic direction> shaping, approving and reviewing University

strategic and operational plans

> monitoring University progress generally against performance indicators and, more specifically, against targets

> determining the future development of the University’s campuses

2 The Vice-Chancellor> appointing the Vice-Chancellor

> overseeing review of the Vice-Chancellor’s performance and remuneration

3 Key policies, legislation and compliance> overseeing the establishment of key University

policies

> defining University policies and procedures consistent with community expectations where those expectations are relevant and can be identified

> establishing University legislation

> overseeing University compliance, including with obligations set out in the Deakin University Act 1974 (Vic)

4 Risk management > overseeing University risk management

> overseeing the protection and enhancement of the University’s reputation

5 Control and accountability> approving the University’s budget and business

and financial plans

> monitoring University performance against the budget and plans

> overseeing University asset management

> overseeing the sound management of the University

6 Commercial activities and controlled entities> approving major University commercial

ventures

> overseeing the effective operation and performance of significant commercial activities, including those conducted through University controlled incorporated entities

7 Academic standards> ensuring adequate procedures for the

maintenance and monitoring of University academic standards in teaching, assessment and research

8 University culture> satisfying itself that the University is fulfilling its

obligations to its students both as regards its academic programs and the general University experience

> satisfying itself that the University is fulfilling its obligations to staff both as regards its employment practices and their general development

> satisfying itself that the University culture:

> is consistent with the mission and core commitments

> facilitates upholding the academic freedom of staff

> encourages links with the wider community

9 Council’s own affairs> establishing procedures to meet Council’s

responsibilities

> ensuring clear delegations to the Vice-Chancellor, to Academic Board, to committees of Council and as otherwise required

> managing Council’s own performance


Composition, membership and terms of office

The names, qualifications and experience of the members of Council who held office at the date of this report, the method of their appointment, their term of office, years served on Council, and attendance of meetings is set out below.

Members ex-officio

The Chancellor

Mr R.H. Searby QCMA OxonTerm of office:

1 January 2003–31 December 2005

Years on Council: 8

Council Committees Membership:

Chair of Chancellor’s Advisory, Nominations, Honorary Degrees and Senior Salaries committees. Ex-officio member of any committee and/or board established by Council, with the exception of one established to search for a chancellor.

Currently a non-executive director of Times Newspapers Holdings Ltd (UK). Past directorships include BRL Hardy Ltd; The News Corporation Ltd (chair); Equity Trustees Ltd (chair); Rio Tinto Ltd and Rio Tinto PLC; Shell Australia Ltd and Woodside Petroleum Ltd. Previously a Reuters trustee; former member of the Council of the National Library of Australia; and the Council of the Melbourne Museum; former chair of the Geelong Grammar School Council. As a QC of 30 years standing has practiced principally in the fields of commercial and company law, intellectual property law, constitutional law and banking law.

The Vice-Chancellor

Professor S.A. WalkerLLB(Hons) LLM MelbTerm of office:


Years on Council: 2


Ex-officio member of each of Council’s standing committees. The Vice-Chancellor did not exercise her right to membership of Audit Committee in 2004.

Vice-Chancellor and President of Deakin University since 3 January 2003. Previously (at the University of Melbourne): senior deputy vice-chancellor; Hearn professor of law; president of the Academic Board; and pro-vice chancellor.

Associate to Justice Aickin of the High Court of Australia (1978–March 1979); solicitor (1979); associate partner with Gillotts Solicitors (1980). Extensive teaching experience in public law and media law. Published widely in the field of media law.

The Chair of Academic Board

Professor B.U. CrassiniBA(Hons)(Psy) PhD QldTerm of office:

16 July 2003–31 December 2004

Years on Council: 7


Chancellor’s Advisory, Honorary Degrees and Nominations committees.

Professor of psychology. Expertise in the field of higher education, including in the areas of teaching, research and academic quality assurance.

Members appointed by the Governor in Council

Mr J.D. MaddockGrad Dip(Bus) RMIT, Grad Dip (Ed) HIAETerm of office:

13 August 2002–31 December 2004

Years on Council: 2.5


Finance and Business Affairs Committee.

Chief Executive Officer, Box Hill Institute of TAFE. Extensive experience in all aspects of vocational education and training (VET). Significant involvement in government agencies and industry organisations including the Victorian Curriculum and Assessment Authority. Formerly chair of the VECCI Regional Development Committee for Geelong and South-West Region. President and chair of Basketball Australia; Australia’s representative on the Oceania Basketball Federation Management Committee; delegate on the Australian Olympic Committee and on FIBA. Past board member of the Melbourne Tigers Basketball Club.

Mr A.E. FairleyLLB MelbTerm of office:


Years on Council: 2


University Appeals Committee (Chair); Finance and Business Affairs Committee (from August); Legislation Committee (until August).

Company director and solicitor; practising as a solicitor in Melbourne since 1974 specialising in equity and superannuation law. Considerable involvement with superannuation industry bodies and in the hospitality and tourism sector. Currently a board member of Ecotourism Australia, and the International Ecotourism Society (Washington, DC). Executive member of the International Hotels Environment Initiative (London); member of the Falls Creek Resort Management Board; director and major shareholder of the Sundowner Motels Group in Australia.


Dr P.C. TurnerBA(Hons) WA, LITTM France, PhD Syd, AMusA, MACETerm of office:

20 May 2003–31 December 2005

Years on Council: 9


Legislation Committee (Chair); former deputy chancellor and member of Chancellor’s Advisory, Honorary Degrees, Nominations and Senior Salaries committees (1999–2002).

Principal of The Geelong College. Senior teaching and administrative experience in independent schools in Sydney and Adelaide. Formerly tutor and research scholar in French studies at the universities of Western Australia, Paris and Sydney. Seminal involvement in fostering professional development of language teachers, serving on and chairing a number of committees for the NSW Board of Studies and the Association of Independent Schools. Council member of Marcus Oldham College. Trustee of the Geelong Performing Arts Centre until 1999.

Mrs S. De GilioMSc Bristol, NZROT, MHSM, CHSM, AFCHSETerm of office:

20 May 2003–31 December 2005




Chief Executive Officer of Barwon Health. Clinical rehabilitation and health management background. Leadership in health services in the United Kingdom, New Zealand and Australia over the past 15 years.

Ms J.M. LightowlersBA DipEd WA, LLB LLM MelbTerm of office:

16 March 2004–31 December 2006

Years on Council: 1


Legislation Committee.

Practising solicitor; partner in the law firm Francis Abourizk Lightowlers; admitted to practice in Queensland, New South Wales, Tasmania and Victoria; qualified mediator. Specialises in the areas of corporate governance, fiduciary obligations, space law, alternative dispute resolution, intellectual property generally, mining law, establishment of international consortia, corporate restructuring, labelling laws and comparative advertising, patent and trade mark portfolio management and agreements and assignments of intellectual and industrial property. Board member of International Network for Acid Prevention (INAP) Limited. Prior to practising law, English teacher at secondary school level in WA, SA and Victoria.

Mr D.F. Jones*Term of office:

March 2004–31 December 2006

Years on Council: 7


Audit Committee; deputy chancellor and member of Chancellor’s Advisory, Honorary Degrees, Nominations and Senior Salaries committees. Former member of Campus Planning Committee (1999–2003). Chair of the Vice-Chancellor’s Community Reference Group at Warrnambool.

Company director. Former managing director of Fletcher Jones and Staff Pty Ltd. Former board member of the Australian Wool Board and Corporation (deputy chair 1990–1991); the International Wool Secretariat (London); the Wool R&D Committee and Council. Local government commissioner (1994–1996). State Training Board member (1998–2001). Currently a member of the council of the South West Institute of TAFE, and chair of the Warrnambool Art Gallery Board.

A member appointed by the Minister

Dr D.J. GunningBSc(Hons), MSc(Chem Ed) Glasgow, PhD(Ed) Strathclyde, SecTeachingCert. Jordan Hill College of Education, GlasgowTerm of office:


Years on Council: 4


Legislation Committee.

Director of the Victorian Qualifications Authority. Thirty years experience in public education service in teaching and various management positions in local government and qualification bodies. Former senior manager in the Scottish Vocational Education Council and its successor body, the Scottish Qualifications Authority.

Members appointed by Council

Ms M.L. Edmond*BArch Melb, LFRAIA, MIArbMA Term of office:


Years on Council: 6


Campus Planning Committee (Chair); deputy chancellor and member of Chancellor’s Advisory, Honorary Degrees, Nominations and Senior Salaries committees.

Architect specialising in institutional architecture, urban design, dispute resolution and design teaching. Member of various associations including the Royal Australian Institute of Architects; the National Trust of Australia; the National Gallery; the Institute of Arbitrators and Mediators and the Building Disputes Practitioners’ Association.


Mr D.M. MorganBCom MelbTerm of office:


Years on Council: 6


Finance and Business Affairs Committee (Chair); Audit Committee; former deputy chancellor and member of Chancellor’s Advisory, Honorary Degrees, Nominations and Senior Salaries committees (2000–2003). Chair of the advisory board of DeakinPrime.

Company director. Member of the Board of the Australian Trade Commission (Austrade); the Board of the Victorian Centre for Advanced Materials Manufacturing; chair of the National Motor Vehicle Theft Reduction Council; the Geelong Economic Development Board; and Australia Sports International. President of Sports Industry Australia; board member of Sports Employment Australia and SportsSure Pty Ltd. Chaired the review committee for the development of the Federal Government Action Plan on Sport and the implementation committee for that plan for three years. Former president of the Ford Motor Company of Australia and the Federal Chamber of Automotive Industries.

Mr A.J. Kloeden*BSc(For)(Hons) MSc(BusStud) LonTerm of office:


Years on Council: 8


Deputy chancellor and member of Chancellor’s Advisory, Honorary Degrees, Nominations and Senior Salaries committees; former member of Finance and Business Affairs Committee (1999–2003). Member of the advisory board, DeakinPrime.

Currently Chief Executive Officer of Serco Group Pty Ltd. Formerly managing director of the Woolmark Company and CEO of Melbourne IT. Leadership and change management roles with leading Australian companies in retail and wholesale industries.

Mr M.J. DowlingBEc Monash, FCA, KSJTerm of office:

12 June 2003–31 December 2005



Finance and Business Affairs Committee and its sub-committee, the Investment Advisory Committee (Chair).

Chartered accountant. Senior partner in large accounting firm for 20 years. Corporate consulting business since 1996. Director of several enterprises. Extensive involvement with Geelong business and communities. Past president of the Geelong Chamber of Commerce.

Ms M.T. Prendergast Term of office:


Years on Council: 7


Campus Planning Committee. Chair of the Museum of Art Committee, an advisory committee to the Vice-Chancellor.

Writer and art administrator; director of Prendergast Publishing; art advisor to the Hotel Sofitel; contributor to newspapers and magazines including The Age. Formerly journalist for The Times, London, and feature writer for Australian Consolidated Press. Member of a number of boards and committees, including the Treasury Building Committee; the National Gallery Women’s Committee; and the Brotherhood of St Laurence’s Promotions and Marketing Committee.

Mr B.R. JamisonFCA, FASCPA, ACIS, FAICD, AIArbaTerm of office:


Years on Council: 4


Audit Committee (Chair); former member of Finance and Business Affairs Committee (2002–2003).

Chartered accountant; senior partner at Jamison Alliott. Deputy chair of the World Board of the Alliott Group; chair of the Asia Pacific Regional Board of the Alliott Group. Treasurer of Green Cross Project Inc. Areas of expertise include strategic planning, business valuations, company board evaluations, arbitration and mediation, audit assurance and investigations.

A member elected by and from the professors

Professor M. RimmerMA Oxon, MA WarwickTerm of office:


Years on Council: 3


University Appeals Committee; Honorary Degrees Committee.

Chair in Management, Faculty of Business and Law, Deakin University. Former head of the Bowater School of Management and Marketing, Deakin University. Chair of Academic Board’s Admission and Selection Committee. Current research interests include change management and industrial relations.

*Deputy Chancellors’ term of office concludes 31 December 2004


A member elected by and from the academic staff

Ms L. ForsythBA DipEd Melb, MA LaTrobeTerm of office:


Years on Council: 3



Lecturer in the School of Literary and Communication Studies, Faculty of Arts, Deakin University. Member of various faculty committees. President of the Deakin branch of the National Tertiary Education Union (NTEU) for the past four years. Research interests include Christina Stead and multicultural writing.

A member elected by and from the general staff

Ms P.H. ReidBA DipEd GradDip(IndRel) Monash, BEd LaTrobeTerm of office:


Years on Council: 2


Campus Planning Committee.

Coordinator of School Experience, Faculty of Education, Deakin University. National training coordinator with Finance Sector Union (1994–1997). Industrial organiser with Australian Education Union. Principal of Ardoch Windsor English Language Centre (1987–1990).

Members elected by and from the students

Mr D.A. LyellBA DeakinTerm of office:


Years on Council: 2


Campus Planning Committee; Nominations Committee; University Appeals Committee; former member of Finance and Business Affairs Committee (2003).

Postgraduate student (MBA). Former vice-president (postgraduate students) of the Deakin University Student Association (DUSA) Inc. Former member of the DUSA Council and the Council of Australian Postgraduate Association’s Strategic Planning Committee. Managing Director of Future Echoes Business Solutions.

Ms B.G. McKenzieTerm of office:


Years on Council: 1


Finance and Business Affairs Committee; Legislation Committee.

Undergraduate student, Bachelor of Education and Bachelor of Applied Science double degree. Former member of Student Council and other committees. Former President of the Deakin University Student Association (DUSA).

The Deakin University Council, 2004, pictured in the James Leslie Council Chamber at the Geelong Waterfront campus


As at 31 December 2004 a full complement of 21 members of Council was in place.

The terms of office of members of Council are specified in the Act. External members are appointed for a three-year term, members of University staff are elected for a two-year term and University students are elected for a one-year term. The Chancellor, Vice-Chancellor and the Chair of Academic Board are ex-officio members. In accordance with Council Operating Provisions and pursuant to the requirements of Protocol 6 of the National Governance Protocols (as per Table A of the Higher Education Support Act 2003 (Cth)), the maximum period to be served by Council members (other than ex-officio members) shall not exceed 12 years unless otherwise specifically agreed by the majority of the Council.

Appointments to membership of Council are made in accordance with a procedure which is approved and periodically reviewed by Council. When considering potential candidates for Council membership, the Nominations Committee of Council considers the balance of skills and experience across the membership of Council and, in particular, takes into consideration the following matters: an appreciation of the values of a higher education provider and its core activities of teaching and research, its independence and academic freedom; the capacity to appreciate what the University’s external community needs from the University; experience relevant to the University’s strategic priorities and Council’s identified functions; sampling of University community stakeholder groups not already represented by ex-officio or elected members of Council; geographic spread of membership; gender; business experience; financial qualifications or like experience; previous board or like experience; senior management experience; in respect of current members of Council seeking reappointment, frequency of attendance at Council and committee meetings; and any other consideration which the Committee may regard as material.

Elections to membership of Council are conducted in accordance with University legislation approved by Council and in accordance with a procedure approved by the Vice-President (Administration) and secretary to Council.

A comprehensive induction program, encompassing an induction kit, information sessions and mentor support, is made available to all new members of Council in accordance with a Council-approved process.

Chancellor and Deputy Chancellor

Council elects the Chancellor of the University for a term of three years or less. Council also elects a number of deputy chancellors from among its external members for a term of one year or less.

The Chancellor, or a deputy chancellor in the absence of the Chancellor, presides at meetings of Council.

The Chancellor is an ex-officio member of every University faculty, board and committee established by resolution of Council, excepting that established to search for a chancellor. The Chancellor may also preside at any of these meetings.

The Chancellor is responsible for conducting the annual review of the Vice-Chancellor’s performance (taking into account advice from the Senior Salaries Subcommittee of Chancellor’s Advisory Committee), primarily relating to outcomes in respect of the University’s strategic objectives, and for reporting to Council that the review has been undertaken.

The Chancellor also receives lists of graduands and confers degrees of the University on Council’s behalf and has authority to act on behalf of Council in regard to such matters as Chancellor’s Advisory Committee, a standing committee of Council, determines cannot wait until the next meeting of Council.

The role and responsibilities of Council members

Guidelines, approved and periodically reviewed by Council, set out the roles and responsibilities of Council members including information about the legal responsibilities of Council members; their liability and indemnity; the duties of Council members as determined by Council; and the responsibilities of the University in respect of Council members. These responsibilities include providing members with such legal and financial advice as may be necessary to enable them to discharge their fiduciary duties.

Conflicts of interest

The procedure for disclosure by Council members of potential conflicts of interest and for disclosure of recent transactions with the University is approved and periodically reviewed by Council. It is the responsibility of all members to ensure that they comply with this procedure. Members of Council and members of committees of Council are required to declare a potential conflict of interest either before the commencement of a meeting at which matters that a member considers may be in conflict with their own interests are due to be discussed or voted upon; or, during a meeting, at the point at which the potential conflict of interest becomes known to the member. In the event that the chairperson perceives there to be a potential conflict of interest of which a member may be unaware, the chairperson shall raise the matter with that individual.

Where a declaration of interests has been made, except in instances of pecuniary interest, consideration is given to the nature and extent of the conflict and the appropriate action to be taken is considered by Council or the relevant committee. Such action may include: withdrawal of the member from the meeting for the discussion and decision upon the item relevant to their conflict of interest; enabling participation of the member during discussion but requiring withdrawal before any decision is made on the item of business relevant to the conflict of interest; enabling the member to remain present during discussion and decision on the item of business relevant to the conflict of interest with no participation in the discussion and decision process; or enabling the member to remain present and participate in the discussion and to vote.

In instances of pecuniary interest, unless Council or the relevant committee otherwise directs, the member must not be present during any discussion of the matter and must not vote on the matter. If the member does vote, the vote is to be disallowed.

All decisions made by Council or the relevant committee in respect of conflicts of interest and any actions taken as a result are fully minuted in a resolution, identifying the member, the nature and extent of their interest in the matter and its relation to the affairs of the University. The resolution specifies the action determined by Council or the respective committee as appropriate and, where the member is permitted to be present during discussion or permitted to be present during discussion and to vote, confirms that Council or the relevant committee is satisfied that the member’s interest should not disqualify them from voting or being present during consideration of the matter.

In the case of a conflict of interest, the Chancellor or chairperson determines whether future agenda papers regarding this matter should be withheld from the member concerned.

All declarations of conflicts of interest are recorded in the minutes of the meeting at which they are declared and, in the event that a member is required to leave the meeting for the duration of an item in which they have a potential conflict of interest, the time of their departure and of their return is also recorded in the minutes.

In addition, members are required to complete a written declaration of interests annually.

Chancellor Mr Richard Searby QC with the Attorney General Mr Philip Ruddock

at the Deakin Law Oration at the Melbourne campus at Toorak>


Council operations

Meetings

University Council—meeting attendance 2004

A B C

Mr R.H. Searby QC (Chair) 7 7 -Professor B.U. Crassini 7 71 -Mrs S. De Gilio 7 6 1Mr M.J. Dowling 7 7 -Ms M.L. Edmond 7 7 -Mr A.E. Fairley 7 5 2Ms L. Forsyth 7 5 2Dr D.J. Gunning 7 6 1Mr B.R. Jamison 7 7 -Mr D.F. Jones 62 5 1Mr A.J. Kloeden 7 4 3Ms J.M. Lightowlers 6 4 2Mr D.A. Lyell 7 7 -Ms B.G. McKenzie 7 7 -Mr J.D. Maddock 7 7 -Mr D.M. Morgan 7 6 1Ms M.T. Prendergast 7 5 2Ms P.H. Reid 7 6 1Professor M. Rimmer 7 6 1Dr P.C. Turner 7 6 1Professor S.A. Walker 7 7 -

A Number of meetings held during member’s term

B Number of meetings attended by each member

C Number of meetings for which leave of absence was granted to each member/apology was received for each member

Council met seven times during 2004. Council meetings are attended by members of the University’s Senior Executive to provide a timely response to questions raised by Council members. The Council agenda for each meeting is structured in accordance with the requirements of a schedule of business approved by Council on an annual basis. During 2004 all matters listed in the schedule of business were addressed by Council.

In February 2004 Council members attended the annual Council Planning Conference with the Senior Executive at which the draft revised Strategic Plan was considered together with the University’s response to Commonwealth Higher Education reforms.

Council performance review

Council undertakes a formal biennial review of its performance against its agreed functions and a range of other priorities and operational matters. Outcomes of the review are documented in the form of an action plan for the forthcoming year which is approved by Council. Subsequently, Council periodically receives a report of progress until all actions have been implemented. The most recent performance review was conducted in April 2004.

National Governance Protocols

In 2004 Council undertook a review of its policies and procedures against the framework of the National Governance Protocols for Higher Education of the Higher Education Support (Transitional Provisions and Consequential Amendments) Act 2003 (Cth) to ensure compliance. In the main, legislation, policies and procedures were compliant with the Protocols. Where required the appropriate steps to ensure compliance were undertaken, including requests for amendments to the Deakin University Act to be made by State Government to accommodate the requirements of National Governance Protocols.

The University was subsequently assessed by the Department of Education, Science and Training as having complied with the majority of the Protocols and having taken reasonable steps towards complying with the remainder.

1Professor C. Gray attended the fourth meeting of Council on 12 August 2004 as Acting Chair, Academic Board, for Professor B.U. Crassini.2In addition, Mr D.F. Jones attended the first meeting of Council on 26–27 February 2004 as a visitor pending his re-appointment to Council by the Governor in Council.


Committees of Council

Council is assisted in the discharge of its duties by a number of standing and ad hoc committees. A diagrammatic representation of these, as a component of the University committee system, is set out below.

Terms of reference for each standing committee of Council set out composition and responsibilities of the respective committee, and each committee operates in accordance with a set of common operating provisions for standing committees of Council.

Each committee conducts a formal, biennial performance review against its terms of reference and other specified performance indicators, reporting and making recommendations to Council regarding the outcome. An action plan for the forthcoming year for each committee is then developed to address issues arising from the review, a report of progress against which is received by each committee mid-year.

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University committee structure

Committees reporting to Council and Academic Board


Audit Committee

Audit committee comprises five members, each external to the University.

The responsibilities of Audit Committee include:

> Providing independent advice to Council on University accounting, control and reporting practices and the management of corporate assets.

> Considering the University’s annual financial accounts comprising a report of operations and the audited financial statements, for accuracy and compliance with appropriate standards and, if appropriate, recommending to Council that they be signed for subsequent inclusion in the University’s Annual Report.

> Considering external audit reports, responses and related matters including reports of the Auditor-General and reporting to Council as appropriate.

> Approving the annual University Internal Audit Plan and reporting to Council as appropriate.

> Considering internal audit reports, reviewing internal audit policy and reporting to Council as appropriate, in order to provide Council with advice regarding whether the University has an effective internal audit operation and adequate audit coverage.

> Considering reports on corporate risk assessment and controls, reviewing risk policies and reporting to Council as appropriate.

> Considering reports on University corporate governance matters and at Council’s request, reviewing corporate governance policies and reporting to Council as appropriate.

> Advising Council on any matters referred to it by Council.

Members of Audit Committee at 31 December 2004 were Mr B.R. Jamison (Chair), Mr I.S. Crawford, Mr D.F. Jones, Mr D.M. Morgan and Mr C.R. Norris.

Meetings are attended by the Vice-Chancellor, the Vice-President (Administration), the Head, Financial and Business Services Division and the Manager of the Internal Audit Unit. External auditors and other senior staff as required attend meetings by invitation.

The Committee met four times during the year.

Audit Committee—meeting attendance 2004

A B C

Mr B.R. Jamison (Chair) 4 4 -

Mr I.S. Crawford 4 3 1

Mr D.F. Jones 33 3 -

Mr D.M. Morgan 4 4 -

Mr C.R. Norris 4 4 -

A Number of meetings held during member’s termB Number of meetings attended by each memberC Number of meetings for which leave of absence was

granted to each member/apology was received for each member

3In addition, Mr D.F. Jones attended the first meeting of Audit Committee on 9 March 2004 as a visitor pending his re-appointment to Council by the Governor in Council.


Campus Planning Committee

Campus Planning Committee comprises eight members: the Chancellor or nominee; three members of Council, two of whom are external members and one a member of Council elected by the staff; the Vice-Chancellor or nominee; the Vice-President (Administration) or nominee; the Chair of Academic Board or nominee; and one elected student member of Council.

The responsibilities of Campus Planning Committee include:

> Considering proposed masterplans for the physical development of each of the University’s campuses and making recommendations to Council regarding approval and/or amendments as required.

> Ensuring that proposed developments are in accordance with approved masterplans or, in the case of a project not being in accordance, determining whether a recommendation for approval should be made to Council.

> Establishing enabling policy regarding the management of the University’s physical facilities and making recommendations to Council in regards to other enabling policy as required to meet the Committee’s responsibilities.

> Establishing the process for selection of architects for major capital works and considering and approving recommendations for the appointment of architects.

> Considering and approving recommendations regarding design and construction guidelines.

> Providing advice to the Vice-Chancellor on campus planning aspects of proposals for the University’s capital priorities and on proposals for the design of major new University buildings.

> Considering reports on the progress of major capital works.

> Making recommendations to Council on significant changes to University landholdings and considering proposals for major new commercial leases of significant landholdings, buildings or facilities.

> Receiving annual reports on utilisation of University buildings and on the status of leases by other parties of significant University landholdings, buildings or facilities.

> Considering proposals for the naming of University buildings and facilities in accordance with appropriate policy and making recommendations to Council as required.

Members of Campus Planning Committee at 31 December 2004 were Ms M.L. Edmond (Chair), Mr R.H. Elliot, Professor C. Langston, Mr D.A. Lyell, Ms M.T. Prendergast, Ms P.H. Reid, Dr P.C. Turner, and Professor S.A. Walker.

The Committee met six times during the year.

Campus Planning Committee—meeting attendance 2004

A B C

Ms M.L. Edmond (Chair) 6 6 -

Mr R.H. Elliott 6 6 -

Professor C. Langston 5 5 -

Mr D.A. Lyell 6 6 -

Ms M.T. Prendergast 5 1 4

Ms P.H. Reid 6 4 2

Dr P.C. Turner 5 3 2

Professor S.A. Walker 6 6 -





Chancellor’s Advisory Committee

Chancellor’s Advisory Committee comprises seven members: the Chancellor; the Deputy Chancellors; the Vice-Chancellor; the Chair of the Academic Board; and the Vice-President (Administration).

When acting as Nominations Committee, the Committee’s membership is augmented by a student member of Council. When acting as Honorary Degrees Committee, membership is augmented by the professor elected to Council, the Deputy Chair of Academic Board and another member of Academic Board nominated by the Board. When acting as the Senior Salaries Committee, membership is restricted to the Chancellor and Deputy Chancellors.

The responsibilities of Chancellor’s Advisory Committee include:

> Advising the Chancellor on matters the Committee considers need to be dealt with before the next scheduled meeting of Council.

> Making recommendations to the Minister regarding proposed appointments to membership of Council by the Governor in Council and making recommendations to Council regarding proposed appointments by Council (when undertaking this role the Committee is known as Nominations Committee).

> Undertaking such corporate governance responsibilities as Council may determine from time to time including making recommendations on the appointment of chairpersons and members of Council committees; advising Council on the conduct, maintenance and orderly review of Council operations; and advising Council on the conduct and outcome of periodic reviews of performance by Council and its committees.

> Advising the Chancellor in confidence on the annual performance of the Vice-Chancellor and determining the conditions of employment and remuneration of the Vice-Chancellor and of senior officers of the University (when undertaking this role the Committee is known as the Senior Salaries Committee).

> Providing advice and making recommendations to Council in respect of human resources policy and matters in accordance with advice received from the Vice-Chancellor upon such matters.

> Advising the Vice-Chancellor on recommendations for honorary awards of the University (when undertaking this role the Committee is known as Honorary Degrees Committee).

> Advising Council on matters referred to it by Council and, if requested by Council, acting on Council’s behalf.

Members of Chancellor’s Advisory Committee at 31 December 2004 were Mr R.H. Searby (Chair), Professor B.U. Crassini, Mr R.H. Elliott, Ms M.L. Edmond, Mr D.F. Jones, Mr A.J. Kloeden, Professor S.A. Walker.

The Committee met six times during the year.

Chancellor’s Advisory Committee—meeting attendance 2004

A B C

Mr R.H. Searby QC (Chair) 6 6 -

Professor B.U. Crassini 6 54 1

Ms M.L. Edmond 6 5 1


Mr D.F. Jones 55 4 1

Mr A.J. Kloeden 6 4 2





4Professor M. Rimmer attended the fourth meeting of Chancellor’s Advisory Committee on 13 July 2004 as Acting Chair of Academic Board, for Professor B.U. Crassini.5In addition Mr D.F. Jones attended the first meeting of Chancellor’s Advisory Committee on 9 February 2004 as a visitor pending his re-appointment to Council by the Governor in Council.


Finance and Business Affairs Committee

Finance and Business Affairs Committee comprises ten members: the Chancellor or nominee; four members appointed by Council, two of whom are external members of Council, one is a member of Council elected by the staff and one is a member of Council elected by the students; two members appointed by Council who are not required to be members of Council but at least one of whom must have substantial private sector financial management experience; the Vice-Chancellor or nominee; the Vice-President (Administration) or nominee; and the Chair of Academic Board or nominee.

The responsibilities of Finance and Business Affairs Committee include:

> Advising Council on matters concerning financial and investment matters including the University’s rolling financial management plan.

> Reviewing and approving relevant policies, including those related to the fees and charges levied by the University pursuant to Statute 6.1—Fees and Charges.

> Considering and approving financial statements for the University with regard to content, substance, impact and consistency with the University’s strategic objectives.

> Reviewing the financial performance of University companies and major commercial activities and making recommendations to Council on the proposed establishment of such bodies.

> Approving material variations to approved University expenditure programs.

> Advising Council on proposed University business ventures as a means of increasing non-government income.

Members of the Committee at 31 December 2004 were Mr D.M. Morgan (Chair), Professor J. Blackmore, Ms S. De Gilio, Mr M.J. Dowling, Mr R.H. Elliott, Mr A.E. Fairley, Ms L. Forsyth, Mr J.D. Maddock, Ms B.G. McKenzie, Professor S.A. Walker.

The Committee met eight times during the year.

Finance and Business Affairs Committee—meeting attendance 2004

A B C

Mr D.M. Morgan (Chair) 8 6 2

Professor J. Blackmore 8 4 4

Mrs S. De Gilio 7 6 1

Mr M.J. Dowling 8 8 -


Mr A.E. Fairley 3 2 1

Ms L. Forsyth 8 6 2

Mr J.D. Maddock 8 5 3

Ms B.G. McKenzie 8 7 1





6Professor P. Hamilton attended the third meeting of Finance and Business Affairs Committee on 9 March 2004 in the capacity of Acting Vice-Chancellor, for Professor S.A. Walker.


Risk management

The University’s approach to risk management follows the Australian Standard AS/NZS 4360:2004 Risk Management.

Within the University, the Vice-Chancellor is responsible to Council for identifying risks and for ensuring the adequacy and effectiveness of the associated treatment or control processes. Council oversees University risk management via Audit Committee. A register of University-level risks sets out the highest-level risks facing the University, and the controls in place to manage them. This register is approved annually by the Vice-Chancellor and is reported to Council via Audit Committee. Each organisational area of the University is also required to establish, monitor and revise a register of risks pertaining to their area, with specialist risk management software being used by each area for this purpose.

During 2004, the Planning and Resources Committee (PRC) (the key advisory body to the Vice-Chancellor on matters linking planning and resourcing decisions and policy) established a risk and compliance management subcommittee to review organisational area risk registers using a peer review process. Findings are reported regularly to PRC, with that committee in turn reporting to the University’s Senior Executive and to Council via Audit Committee.

As part of the risk management system, the University’s Internal Audit Unit reviews the adequacy and effectiveness of the processes in place to manage risks.

The University continues to review and maintain a comprehensive insurance cover for insurable risks.

A summary of the extent and nature of risk for the University’s commercial ventures follows.

Legislation Committee

Legislation Committee comprises eight members: the Chancellor or nominee; one external member of Council; the Vice-Chancellor or nominee; the Vice-President (Administration) or nominee; the Chair of Academic Board or nominee; one elected student member of Council; and two additional members appointed by Council.

The Committee is responsible for advising and recommending to Council on any matter pertaining to the Deakin University Act and University Statutes and regulations.

Members of the Committee at 31 December 2004 were Dr P.C. Turner (Chair), Professor J.J. Du Plessis, Mr R.H. Elliott, Dr D.J. Gunning, Ms J.M. Lightowlers, Mr B. Marshall and Ms B.G. McKenzie.

The Committee met four times during the year.

Legislation Committee—meeting attendance 2004

A B C

Dr P.C. Turner (Chair) 4 4 -

Professor J.J. Du Plessis 1 1 -


Dr D.J. Gunning 4 3 1

Ms J.M. Lightowlers 2 1 1

Mr B. Marshall 2 1 1

Ms B.G. McKenzie 4 2 2




University Appeals Committee

University Appeals Committee comprises four members of Council, two of whom are external members and one of whom is an elected student member. The Committee hears and determines appeals against findings of the University Discipline Committee in respect of matters of general misconduct by students and against decisions of the Vice-Chancellor with regard to exclusion of students for health reasons, those decisions having been made pursuant to Statute 5.6—Exclusion for Health Reasons.Members of the Committee at 31 December 2004 were Mr A.E. Fairley (Chair), Ms J.M. Lightowlers, Mr D.A. Lyell and Professor M. Rimmer. The Committee was not required to meet in 2004.


Risk assessment for University associates and commercial ventures, 2004

Associate/commercial venture Principal objects Level of financial risk

Level of reputational risk

Australian Human Resources Institute Pty Ltd; formerly Australasian Human Resources Institute Pty Ltd

Professional association for human resources managers

Low Low

Callista Software Services Pty Ltd Development, maintenance and support of the ‘Callista’ student administration and management system to Australian universities and TAFE

High Medium

DeakinPrime (a division of Deakin University) Provision of training and education services to a range of corporate and government clients

Medium Low

Deakin Networks Pty Ltd Company is dormant Low Low

Unilink Limited Provision of staffing services to Deakin University Low Low

DeakinPrime USA Company is dormant Low Low

V-CAMM Limited Administrator of a Victorian Government STI grant jointly awarded to Deakin University, Monash University and CSIRO in 2002

Low Low

Chirogen Pty Ltd Research into chiral and molecular technology Low Medium

SciVentures Investments Pty Ltd Approved Pre-seed Fund providing funding to commercially promising R&D opportunities within universities and Commonwealth-owned research agencies

Low Medium

Compliance

Through the Vice-Chancellor, Council is responsible for ensuring that the University complies with external and internal statutory and regulatory requirements, including government reporting requirements. Council also ensures that the University maintains and is compliant with University policies. Council receives reports of the University’s compliance with these obligations on an annual basis.

Council is assisted in meeting its compliance obligations by Audit Committee, which provides advice and recommendations on matters relating to the compliance program and relevant policy.

As part of the University’s expanded compliance program, the newly established Risk and Compliance Management Subcommittee of the Planning and Resources Committee reviews the effectiveness of the University’s compliance activity. It does

this by, among other things, considering the appropriateness of the tools used within the compliance program, receiving reports from the Compliance Manager, evaluating developments in program practice and their application to the University’s program and considering proposed communication and awareness proposals to promote a culture of compliance. The Subcommittee also makes recommendations for the continuous improvement of the compliance program and reviews and makes recommendations on the adequacy of the University’s compliance policy.

The Internal Audit Unit conducts a three-year cyclical review of organisational areas’ compliance registers which have been established in accordance with the compliance program. The review commenced in 2004.


Statutes

Statutes revoked, made or amended during 2004

Statute 2.3 The Faculties revoked and remade

Statute 5.1 Admission to Courses revoked and remade

Statute 2.2 The Academic Board amended

Statute 2.9 Deakin University Centres revoked and remade as Statute 2.9—University Institutes

Statute 3.2 The Vice-Chancellor amended

Statute 3.4 Deputy Vice-Chancellors amended

Statute 3.8 Vice-Presidents amended

Statute 3.14 Pro Vice-Chancellors amended

Statute 14.1 Control of University Buildings, Grounds and other Property amended

Compliance with the Freedom of Information Act 1982 (Vic)

Requests for access to documents are made to the Freedom of Information Manager, Mr R.H. Elliott, Vice-President (Administration). The University received four requests for access to documents under the Freedom of Information Act 1982 (Vic) during 2004. Details of the University’s response to each application follow:

1 Full access by provision of photocopies was granted.

2 Full access to 15 documents and partial access (personal information obscured) to one document by provision of photocopies was granted.

3 Full access to 60 documents by provision of photocopied documents was granted. Access was denied to two documents on the grounds of legal professional privilege.

4 Full access by provision of photocopies was granted.

Procedural and legislative compliance matters

Compliance with the Public Sector Management and Employment Act 1998 (Vic)

Deakin University is required to comply with the reporting under the Public Sector Management and Employment Act 1998 (Vic) and this occurs biannually.

Compliance with the Education Services for Overseas Students Act 2000 (Cth)(ESOS)

For the year 2004, the University complied with the Education Services for Overseas Students Act 2000 (Cth) (ESOS) and the National Code of Practice for Registration Authorities and Providers of Education and Training to Overseas Students.


Compliance with National Competition policy and competitive neutrality

The University has a manual addressing compliance with National Competition policy including compliance with the requirements of the policy statements Competitive Neutrality: A Statement of Victorian Government Policy, and Victorian Government Timetable for the Review of Legislative Restrictions on Competition and with subsequent reforms. Staff are made aware of the University’s obligations and are advised of best practices in the Competition Code Compliance manual, which is available electronically on ‘The Guide’—the repository for University policy, procedures, legislation and other information. Advice to staff in relation to matters covered in the manual is readily available. The University’s compliance program includes trade practices and competitive neutrality obligations.

Compliance with the Whistleblowers Protection Act 2001 (Vic)

In accordance with the requirements of section 104 of the Whistleblowers Protection Act 2001 (Vic):

a Deakin University has developed a policy and procedures for reporting disclosures under the Act which may be viewed at http://theguide.deakin.edu.au/TheDeakinGuide.nsf

b one disclosure was made to the University during 2004

c one disclosure was referred in 2004 by the University to the Ombudsman for determination as to whether it was a public interest disclosure

d no disclosed matters were referred to the University during 2004 by the Ombudsman

e one disclosed matter was referred during the year by the University to the Ombudsman to investigate

f no investigations of disclosed matters were taken over by the Ombudsman from the University during 2004

g no requests were made under section 74 during the year to the Ombudsman to investigate disclosed matters

h there were no disclosed matters that the University declined to investigate during 2004

i there were no disclosed matters that were substantiated on investigation

j on completion of the investigation referred to in (e) above the person who made the disclosure and the University were notified of the outcome of the investigation

k no recommendations of the Ombudsman were made under this Act that relate to the University.


the complaint resolution process (which move from early conciliation and informal complaint resolution through further conciliation and/or investigation, to investigation and determination by the dean of the relevant faculty or head of division); the steps to be taken at, and the deadlines applying to, each stage; sources of advice and support; action that may be taken to resolve the complaint; record keeping requirements; and avenues for appeal (including the Office of the Victorian Ombudsman).

Student complaints may also be handled under the University’s statutes, regulations and policies relating to academic progress and student discipline, as well as through the anti-discrimination policies and procedures of the University.

Complaints made to and investigated by the Ombudsman

Two students lodged complaints with the Office of the Victorian Ombudsman in 2004. The matters were referred back to the University and dealt with to the satisfaction of the Ombudsman. No further action was taken.

Internal grievance and complaint procedures

Deakin University is committed to handling complaints fairly, promptly and efficiently. The University’s complaints-handling mechanisms are based on the current Australian Standard. Where possible, matters are resolved at the local level, using internal mechanisms; however the University supports the right of individuals to refer complaints to relevant external bodies. In line with Protocol 7 of the National Governance Protocols, Deakin University has codified its internal grievance procedures and published them, along with information regarding the procedure for submitting complaints to the relevant ombudsman or equivalent agency, on the Web at www.deakin.edu.au/theguide.

The University’s Complaints Handling enabling policy was approved on 12 August 2004. Derived from this are operational policies and procedures relating to staff and student complaints.

Deakin University’s Staff Complaints procedure enunciates the ‘core’ complaints procedures available and staff are encouraged to identify the procedure that is most appropriate for their situation. Specific procedures apply to dispute resolution, staff grievances, equal opportunity, prevention of workplace bullying, and privacy. (In addition to these ‘core’ complaints procedures, other complaints procedures apply to certain specified situations, such as probation, promotion, job evaluation, and reporting disclosures under the Whistleblowers Protection Act 2001 (Vic).) Each specific procedure contains information such as: definitions; the steps to be taken to resolve the matter and, if relevant, the timelines applying to each step; the individuals responsible for handling the complaint; sources of advice and support; record-keeping requirements; and avenues for appeal.

The Student Complaints operational policy articulates the principles under which Deakin University aims to handle complaints from students. These include that all complaints be dealt with quickly, in a supportive environment, in accordance with the principles of natural justice, and that confidentiality be respected. The Student Complaints procedure outlines: grounds for complaint; stages in


When building practitioners are engaged to carry out works for the University, only registered building practitioners are used and this registration is checked prior to the engagement. Registration is maintained during the engagement and there have been no cases of building practitioners becoming deregistered whilst engaged by the University.

Works carried out by external consultants or contractors are not exempt from the ten-year liability cap. Works performed wholly by University staff are covered by the University’s professional indemnity insurance, up to a limit of $15 million per any one claim.

Compliance with the Building Act 1993 (Vic)

Capital works and maintenance, 2004

Works in progress Works completed Value $M Quantity Value $M Quantity

Major capital works— New buildings 27.5 8 5 6

Minor capital works 6.3 62 1.5 30

Maintenance N/A N/A 2.7 N/A

Total 33.8 70 9.2 36

Additional information available on request

Consistent with the requirements of the Financial Management Act 1994 (Vic), Deakin University has prepared material on the following items, details of which are available on request:

> publications

> changes in prices, fees, charges, rates and levies

> major external reviews

> overseas visits undertaken

> shares held beneficially by senior officers as nominees of a statutory authority or subsidiary

> promotional, public relations and marketing activities

> industrial relations issues, and

> major committees sponsored by Deakin University.

Enquiries regarding details of the above should be addressed to: Mr R.H. Elliott, Vice-President (Administration).

Details of information available to the public on the University’s website

Deakin University’s website provides information about

> the University

> courses

> research

> campuses

> online and off campus learning

> faculties, schools and divisions

> employment

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Deakin University’s annual reports can be accessed at:

http://theguide.deakin.edu.au/TheDeakinGuide.nsf

utilising first the Visitor link and then the Publications, Guidelines and other Information link.

All building works are designed to comply with the Building Act 1993 (Vic). To ensure that all new buildings and works to existing buildings comply with current building standards and codes, where required the projects are referred to an independent building surveyor for certification. When certified, the plans are lodged with the local municipal council for their information.

When required, building surveyors issue a Certificate of Occupancy or a Certificate of Final Inspection upon completion of works.

No major changes or factors occurred during 2004 which have affected the achievement of the University’s operational objectives for the year.

No events occurred subsequent to balance date which may have a significant effect on operations in subsequent years.

Council approved the Annual Report 2004 at its meeting held on 22 March 2005.

Mr Richard Searby QC

Declaration

Audited financial statements

As at 31 December 2004


STATEMENT OF FINANCIAL PERFORMANCE FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2004

Consolidated University

2004 2003 2004 2003Note $000’s $000’s $000’s $000’s

Revenue from ordinary activities 2 378,952 354,599 361,988 342,706

Employee benefits expense 2 (202,998) (175,356) (193,126) (166,918)

Depreciation and amortisation expense 2 (26,792) (25,102) (26,018) (24,269)

Other expenses from ordinary activities 2 (136,486) (130,620) (130,449) (128,016)

Borrowing cost expense 2 (1,923) (2,084) (1,923) (2,084)

Profit from ordinary activities before income tax expense 10,753 21,437 10,472 21,419

Income tax expense — — — —

Net profit from ordinary activities after income tax expense 10,753 21,437 10,472 21,419

Increase/(decrease) on revaluation of land and buildings 15 36,944 — 36,944 —

Increase/(decrease) on revaluation of art collection 15 — 1,654 — 1,654

Increase/(decrease) on revaluation of investments 15 616 134 616 134

Total revenue, expense and valuation adjustments recognised directly in equity

37,560 1,788 37,560 1,788

Total changes in equity other than those resulting from transactions with owners as owners

48,313 23,225 48,032 23,207

The accompanying notes form part of these financial statements


STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2004


2004 2003 2004 2003Note $000’s $000’s $000’s $000’s

CURRENT ASSETS

Cash assets 3 68,598 87,072 65,735 86,897

Receivables 4 33,434 32,836 32,205 30,811

Inventories 5 161 518 161 518

Assets held for resale 6 1,259 1,000 1,259 1,000

TOTAL CURRENT ASSETS 103,452 121,426 99,360 119,226

NON-CURRENT ASSETS

Receivables 4 118,336 126,435 119,317 126,448

Other financial assets 7 6,017 5,185 6,887 6,190

Property, plant and equipment 8 600,449 532,702 600,325 532,196

Deferred development and implementation costs 9 2,518 4,844 2,518 4,712

Intangible assets 10 — 346 — —

TOTAL NON-CURRENT ASSETS 727,320 669,512 729,047 669,546

TOTAL ASSETS 830,772 790,938 828,407 788,772

CURRENT LIABILITIES

Payables 11 41,547 46,409 40,647 45,592

Interest bearing liabilities 12 5,811 2,371 5,811 2,311

Employee entitlements 13 27,877 25,804 27,209 25,250

Current tax liabilities 14 142 142 — —

TOTAL CURRENT LIABILITIES 75,377 74,726 73,667 73,153

NON-CURRENT LIABILITIES

Payables 11 107 429 — —

Interest bearing liabilities 12 22,078 27,598 22,078 27,598

Employee entitlements 13 138,524 141,812 138,047 141,438

TOTAL NON-CURRENT LIABILITIES 160,709 169,839 160,125 169,036

TOTAL LIABILITIES 236,086 244,565 233,792 242,189

NET ASSETS 594,686 546,373 594,615 546,583

EQUITY

Asset revaluation reserve 15 344,876 307,316 344,876 307,316

Accumulated funds 16 249,810 239,057 249,739 239,267

TOTAL EQUITY 594,686 546,373 594,615 546,583



STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2004


Inflows/(outflows) 2004 2003 2004 2003Note $000’s $000’s $000’s $000’s

CASH FLOWS FROM OPERATING ACTIVITIES

Commonwealth government grants

Teaching and learning 92,815 100,579 92,815 100,579

HECS and other loan programmes 56,672 62,294 56,672 62,294

Scholarships 2,189 1,482 2,189 1,482

DEST research 11,768 12,500 11,768 12,500

ARC grant - Discovery 2,162 1,679 2,162 1,679

ARC grant - Linkages 2,074 2,865 2,074 2,865

Other Commonwealth 5,221 4,478 5,221 4,478

State government grants 6,798 3,735 6,798 3,735

HECS - Student payments 10,076 9,306 10,076 9,306

Other research grants and contracts 16,493 15,475 12,471 11,509

Fees and charges 120,238 111,967 120,162 112,828

Dividends received 365 545 365 545

Interest received 7,347 4,753 7,392 4,885

Other 45,762 37,695 31,074 26,795

Salaries (203,632) (182,407) (193,977) (173,947)

Suppliers (143,968) (132,416) (136,561) (121,163)

Borrowing costs (1,965) (2,121) (1,965) (2,121)

GST recovered 5,768 4,767 6,622 5,441

Net cash provided by operating activities 17 36,183 57,176 35,358 63,690

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of property, plant and equipment 4,496 6,958 4,496 6,958

Proceeds from sale of investments — 4,796 — 4,796

Addition to land (1,138) (330) (1,138) (330)

Addition to buildings (33,791) (17,605) (33,791) (17,605)

Addition to leasehold improvements (143) (2,123) (144) (2,122)

Purchase of equipment and furniture (11,266) (9,878) (11,188) (10,343)

Purchase of motor vehicles (6,074) (8,605) (6,074) (8,605)

Purchase of library holdings (3,867) (3,849) (3,867) (3,849)

Purchase of art works (113) (55) (113) (55)

Receivables - sale of property — 7,150 — 7,150

Purchase of investments (681) (198) (2,681) (6,198)

Net cash used in investing activities (52,577) (23,739) (54,500) (30,203)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings — 82 — 82

Repayment of borrowings (2,020) (1,985) (2,020) (1,985)

Net cash used in financing activities (2,020) (1,903) (2,020) (1,903)

Net increase in cash held (18,414) 31,534 (21,162) 31,584

Cash at the beginning of the financial year 87,012 55,478 86,897 55,313

Cash at the end of the financial year 17 68,598 87,012 65,735 86,897


NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2004


1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements and accompanying notes constitute a general purpose financial report which have been prepared in accordance with the Victorian Financial Management Act 1994, Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board and Urgent Issues Group Consensus Views.

The financial report is prepared in accordance with the historical cost convention, except for certain assets which, as noted, are at valuation.

All amounts in the financial statements have been rounded to the nearest thousand dollars.

Unless otherwise stated, the accounting policies are consistent with those of the prior year.

(a) FINANCIAL EFFECT OF CHANGES TO COMMONWEALTH PAYMENT ARRANGEMENTS FOR 2005 GRANT YEAR

Background

Payment to universities in respect of programmes under the Higher Education Funding Act 1988 (HEFA) were made on the second and last Thursdays of each month. In the recent past, the first payment in respect of a grant year (equalling 8% of the total recurrent funding for that year) had been made at the end of December of the previous year.

Funding for most programmes under HEFA ended on 31 December 2004 while most new programmes under the Higher Education Support Act 2003 (HESA) commenced on 1 January 2005. Continuing the current practice of making the first payment in December 2004 for the 2005 grant year would mean that Commonwealth payments would be made in respect of programmes that were yet to commence and that these payments are treated by the majority of universities as revenue for 2004. This has considerable accountability implications for the Australian Government Department of Education, Science and Training (DEST) in administering and accounting for the programme payments.

Higher Education Providers (HEP) (even those within the same State) do not treat the early payment uniformly and the payment is treated in at least three different ways – as revenue when it is received, as an advance (a liability), and part as revenue and the other as liability. Such varied treatment creates a lack of transparency and distorts both the Commonwealth funding and the HEPs’ financial year results.

DEST has announced changes to payment arrangements whereby all recurrent payments in respect of a grant year will be made in that year. For the 2005 grant year, the first payment will be made in January 2005 instead of December 2004.

The change to payment arrangements mean, that from the 2005 reporting period, the financial statements of all higher education providers will accurately reflect the Commonwealth financial assistance in respect of a grant year.

Financial effects for 2004

Changed payment arrangements mean that those HEPs that reported the whole or part of the 8% first payment in respect of the 2004 grant year as revenue in 2003 will have the effect of understating the Commonwealth funding for the 2004 grant year in their 2004 Statement of Financial Performance.

To identify the impact of the changed treatment on the operating result, grants provided for 2004 activities but recognised as 2003 revenue should be adjusted by incorporating the amount received in December 2003 as revenue for the 2004 reporting period. The effect of this is shown below:

University

$’000

2004 Revenue from Operating Activities (per Statement of Financial Performance) 361,988

Add Grants Received in 2003 for 2004 Activities:

Commonwealth Government financial assistance 8,903

HECS—Commonwealth payments 4,578

Total Restated 2004 Revenue from Operating Activities 375,469

Restated 2004 Operating Result 23,953

Reported 2004 Operating Result 10,472

Reduction in 2004 Operating Profit 13,481

The Commonwealth will use the restated figures in all DEST publications, including the Finance 2004 publication, to ensure consistent treatment across all HEPs.



1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(b) INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)

The Australian Accounting Standards Board (AASB) is adopting IFRS for application to reporting periods beginning on or after 1 January 2005. The AASB has issued Australian equivalents to IFRS, and the Urgent Issues Group has issued interpretations corresponding to the International Accounting Standards Board (IASB) interpretations originated by the International Financial Reporting Interpretations Committee or the former Standing Interpretations Committee. The adoption of Australian equivalents to IFRS will be first reflected in the consolidated entity’s financial statements for the year ending 31 December 2005.

Entities complying with Australian equivalents to IFRS for the first time will be required to restate their comparative financial statements to amounts reflecting the application of IFRS to that comparative period. Most adjustments required on transition to IFRS will be made, retrospectively, against opening retained surplus as at 1 January 2004.

Deakin University has established a project team to manage the transition to Australian equivalents to IFRS, including training of staff and system and internal control changes necessary to gather all the required financial information. To date the project team has analysed most of the Australian equivalents to IFRS and has identified a number of accounting policy changes that will be required. In some cases choices of accounting policies are available, including elective exemptions under Accounting Standard AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards. Some of these choices are still being analysed to determine the most appropriate accounting policy for the consolidated entity.

Identified major changes that will be required to the consolidated entity’s existing accounting policies include the following (references to new AASB standards below are to the Australian equivalents to IFRS issued in July 2004):

(i) Impairment of assets

Under the new AASB 136 Impairment of Assets non-current assets will be subject to assessment for impairment.

Impairment must be measured for non-current assets with indications of impairment and for intangible assets not yet available for use. Impairment is measured by comparing the asset’s fair value less costs to sell and its value in use. The greater of these two measurements must not exceed the asset’s carrying value. ‘Value in use’ is determined as either:

(a) net present value of net cash inflows (for-profit assets); or

(b) depreciated replacement cost (all other assets).

Deakin University and its controlled entities will adopt AASB 136 Impairment of Assets which will result in a change to current accounting policy, under which the recoverable amount of assets is generally measured where there is an indication of impairment.

(ii) Borrowing costs

Under the new AASB 123 Borrowing Costs borrowing costs are generally expensed. AASB 123 includes the option to capitalise borrowing costs where they relate to qualifying assets. Deakin University has decided that it will expense all of its borrowing costs on adoption of the new accounting standards.

This will result in a change to the current accounting policy, under which borrowing costs related to specific projects are capitalised where they relate to qualified assets.




(c) PRINCIPLES OF CONSOLIDATION

The consolidated accounts incorporate the assets and liabilities of all entities controlled by Deakin University as at 31 December 2004 and the results of all controlled entities for the year then ended. A list of the controlled entities is included in note 23.

The accounts of the controlled entities are prepared for the same reporting period as the University, using consistent accounting policies. Adjustments are made to bring into line any dissimilar accounting policies which may exist.

All inter-entity balances and transactions, and unrealised profits arising from intra-economic entity transactions, have been eliminated on consolidation.

(d) REVENUE

Revenue from grants is recognised when the University gains control of the contribution or the right to receive the contributions. Revenue from fees and charges are recognised when earned. Revenue from the sale of goods is recognised upon the delivery of goods to customers. Revenue from the rendering of a service is recognised upon the delivery of the service to customers or in accordance with governing contracts. Interest revenue is recognised on an accrual basis. Dividend revenue is recognised when received. Donations and bequests are recognised when received by the University.

(e) FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions during the year are converted to Australian currency at rates of exchange applicable at the dates of the transactions or, where applicable, the contracted exchange rate. Amounts receivable and payable in foreign currencies at balance date are converted at the rates of exchange ruling at that date or where applicable, the contracted exchange rate. The gains or losses from conversion of short-term assets and liabilities, whether realised or unrealised, are included in operating profit as they arise.

Costs or gains arising at the time of hedged transactions for the purchases and sale of goods and services, and exchange differences that occur up to the date of purchase or sale, are deferred and included in the measurement of the purchase or sale.

Translation of Foreign Controlled Entities

Foreign controlled entities are integrated foreign operations, their assets and liabilities are translated into Australian dollars using the temporal method. Any exchange differences arising from translation of monetary items are brought to account as either a revenue or expense unless they relate to qualifying assets.

(f) INCOME TAX

Deakin University is exempt from income tax. Those controlled entities not exempt from income tax adopt the liability method of tax-effect accounting whereby the income tax expense is based on the operating profit adjusted for any permanent differences in accordance with AASB1020 “Income Tax”.

Timing differences which arise due to different accounting periods in which the terms of revenue and expense are included in the determination of accounting profit and taxable income are brought to account as either a provision for deferred income tax or as a future income tax benefit at the rate of income tax applicable to the period in which the benefit will be received or the liability will become payable.

Future income tax benefits are not brought to account unless realisation of the asset is assured beyond reasonable doubt. Future income tax benefits in relation to tax losses are not brought to account unless there is virtual certainty of realisation of the benefit.

(g) CASH

For purposes of the statement of cash flows, cash includes cash, deposits at call, short-term investments and investments with managed funds less bank overdraft.

(h) INVENTORIES

Inventories are valued at the lower of cost and net realisable value. Small stocks of materials purchased by budget centres and held under their control are expensed at the time of purchase.

(i) ASSETS HELD FOR RESALE

Deakin University has an approved plan of sub-division for a parcel of land. The value attributed to this land has been recognised in the accounts at valuation 31 December 2002 plus the subsequent improvement costs.




(j) OTHER FINANCIAL ASSETS

Shares in listed companies are treated as long-term investments and are shown at market value at balance date. Any valuation variations are transferred directly to the Asset Revaluation Reserve. Other unlisted share investments are brought to account at cost less provision for diminution of value at balance date. Dividend income is recognised as revenue when received.

(k) PROPERTY, PLANT AND EQUIPMENT

Land, buildings and art works are carried at independent valuation which are normally conducted every three years or earlier if there is a material movement in property values. Transactions between valuations are carried at cost. The cost of buildings constructed by the University include the cost of materials, direct labour and borrowing costs on specific borrowing over the construction period. Equipment, furniture, motor vehicles, work in progress and library holdings are carried at cost.

Subsequent to the initial recognition as assets, non-current physical assets, other than plant and equipment, are measured at fair value. Revaluations are conducted in accordance with the Victorian Government policy - ‘Revaluation of Non-Current Physical Assets’. Land and buildings are treated as separate classes in accordance with that policy.

Library holdings held at valuation at 31 December 2000 were reverted to cost at 1 January 2001 by deeming the net carrying amount at that date to be cost under the transitional provisions of Revaluation of Non-Current Assets AASB 1041. Library purchases since that date are carried at cost. Depreciation of library holdings from 1 January 2001 has been based on the cost amount.

Where non-current assets are revalued, the net revaluation increment or decrement arising in the reporting period is accounted for as follows:

(i) an increment is credited directly to an asset revaluation reserve except that, to the extent that the increment reverses a revaluation decrement previously recognised as an expense in respect of that same class of assets, it is recognised as revenue for the reporting period; and

(ii) a decrement is recognised as an expense except that, to the extent that the decrement reverses a revaluation increment previously credited to, and still included in the balance of an asset revaluation reserve in respect of that same class of assets, it is debited directly to that revaluation reserve.

Any gain or loss on the disposal of revalued assets is determined as the difference between the carrying value of the asset at the time of disposal and the proceeds from disposal, and is included in the result of the University in the year of disposal.

Depreciation is calculated on a straight-line basis to write off the net cost or revalued amount of each item of property, plant and equipment with a unit value of $2,000 or more, other than freehold land and art works, over its expected useful life to the entity.

Estimates of useful lives are made on acquisition of all assets and reassessed annually and depreciation rates set accordingly.

Major depreciation periods are:

Freehold buildings maximum 50 years

Leasehold improvements the shorter of the term of the lease or the life of the improvement

Computer equipment maximum 4 years

Motor vehicles maximum 10 years

Printing equipment and photocopiers maximum 5 years

All other equipment, furniture, leased assets and library holdings maximum 15 years

The depreciation rates applied are consistent with the prior year.

(l) LEASED NON-CURRENT ASSETS

The University adopts the provisions of Australian Accounting Standard AASB 1008 “Leases” in respect of the assets of the University which are the subject of finance leases.

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred.




(m) DEFERRED DEVELOPMENT AND IMPLEMENTATION COSTS

Development costs are expensed as incurred or deferred where it is expected beyond any reasonable doubt that sufficient future benefits will be derived so as to recover those capitalised costs.

Implementation costs are capitalised and upon completion are amortised over a life of seven years for systems used in the administration of the University. Software developed for licensing to external parties is amortised over five years.

(n) RECOVERABLE AMOUNT

Non-current assets are reviewed annually to ensure they are not carried at an amount which is above their recoverable amount. Where the recoverable amount is less than the carrying values of non-current assets, the assets are written down. The recoverable amount of non-current assets is determined on an undiscounted cash flow basis.

(o) EMPLOYEE BENEFITS

A liability has been recognised for recreation and long service leave entitlements estimated to be payable to employees on the basis of statutory and contractual requirements. All recreation leave and long service leave entitlements expected to be settled within twelve months have been accrued at their nominal amount calculated on the basis of wages and salary rates and on-costs expected to apply on settlement. Long service leave entitlements payable later than twelve months have been measured at the present value of expected future payments, including on-costs, to be made in respect of services provided by employees up to the reporting date. Expected future payments are discounted using interest rates on national government guaranteed securities with terms to maturity that match, as closely as possible, the estimated future cash outflows.

(p) EQUITY

Equity represents the residual interest in the net assets of the University. The State Government holds the equity interest in the University on behalf of the community.

Equity consists of the Asset Revaluation Reserve and Accumulated Funds.

(q) COMPARATIVE FIGURES

Where necessary, comparative figures have been adjusted to conform with changes in presentation in the current year.




2004 2003 2004 2003Note $000’s $000’s $000’s $000’s

2 OPERATING RESULT

Revenue from ordinary activities

Commonwealth government financial assistance

Commonwealth government grants 2.1 116,007 120,448 116,007 120,448

Higher Education Contribution Scheme

Student contributions 10,174 9,208 10,174 9,208

Commonwealth payments 2.1 51,803 55,771 51,803 55,771

State government financial assistance 2.2 6,798 3,735 6,798 3,735

Superannuation—deferred government contributions (4,980) (9,214) (4,980) (9,214)

Fees and charges 2.3 124,779 102,220 125,108 102,517

Investment income 2.4 7,718 5,268 7,763 5,400

Royalties 5,067 6,896 5,067 6,896

Consultancy and contract research 2.5 15,759 14,776 11,974 11,037

Other revenue 2.6 45,827 45,491 32,274 36,908

Total revenue 378,952 354,599 361,988 342,706

Expenses

Employee benefits 2.7 202,998 175,356 193,126 166,918

Depreciation and amortisation 2.8 26,792 25,102 26,018 24,269

Borrowing costs 1,923 2,084 1,923 2,084

Repairs and maintenance 2.9 19,402 16,526 19,074 16,789

Bad and doubtful debts 2.10 (153) 701 (133) 646

Bad and doubtful debts—controlled entities (movement in provision)

— — 14 (1,990)

Other expenses 2.11 117,237 113,393 111,494 112,571

Total expenses 368,199 333,162 351,516 321,287

Operating result before income tax 10,753 21,437 10,472 21,419




2004 2003 2004 2003Note $000’s $000’s $000’s $000’s

2.1 COMMONWEALTH GOVERNMENT FINANCIAL ASSISTANCE

Commonwealth government grants pursuant to the Higher Education Funding Act 1988, including HECS and other Commonwealth loan programmes

DEST—Teaching and LearningOperating Grant 91,584 97,404 91,584 97,404 Capital Development Pool 1,049 — 1,049 —

26.1 92,633 97,404 92,633 97,404

HECS and other Commonwealth loan programmesHECS—Commonwealth payments 51,803 55,771 51,803 55,771 PELS 6,687 6,608 6,687 6,608 BOTPLS 60 83 60 83

26.2 58,550 62,462 58,550 62,462

ScholarshipsAustralian Postgraduate Awards—Pre-2002 funding

component198 505 198 505

Australian Postgraduate Awards—2002 onward funding component

1,258 877 1,258 877

International Postgraduate Research Scholarship 247 100 247 100 Commonwealth Education Costs Scholarships 170 — 170 — Commonwealth Accommodation Scholarships 316 — 316 —

26.3 2,189 1,482 2,189 1,482

DEST ResearchInstitutional Grants Scheme 2,901 2,953 2,901 2,953 Research Training Scheme 7,404 7,535 7,404 7,535 Systemic Research Infrastructure — 775 — 775 Research Infrastructure Block Grants 1,463 1,237 1,463 1,237

26.4 11,768 12,500 11,768 12,500

Total DEST 165,140 173,848 165,140 173,848

Australian Research Council

DiscoveryProject (Large grants) 2,006 1,679 2,006 1,679 Fellowships — — — — Federation Fellowships 156 — 156 —

26.5 2,162 1,679 2,162 1,679

LinkagesInfrastructure Equipment & Facilities — 616 — 616 Special Research Initiatives — 40 — 40 International Researcher Exchange 41 97 41 97 Projects (SPIRT) 1,993 2,152 1,993 2,152

26.6 2,034 2,905 2,034 2,905

Other Commonwealth Government financial assistance 5,221 4,478 5,221 4,478

Total Commonwealth Government financial assistance 174,557 182,910 174,557 182,910

ReconciliationCommonwealth Government grants 2 116,007 120,448 116,007 120,448 HECS—Commonwealth payments 2 51,803 55,771 51,803 55,771 Commonwealth loan programmes (PELS + BOTPLS) 6,747 6,691 6,747 6,691

Total Commonwealth Government financial assistance 174,557 182,910 174,557 182,910




2004 2003 2004 2003Note $000's $000's $000's $000's

2.2 STATE GOVERNMENT FINANCIAL ASSISTANCE

Victorian government grants from the following agencies were received during the reporting period:

VicHealth 676 544 676 544

Department of Education and Training 119 121 119 121

Department of State and Regional Development 3,790 1,614 3,790 1,614

Department of Human Services 613 662 613 662

Parks Victoria 189 140 189 140

Department of Innovation, Industry & Regional Development 66 145 66 145

Department of Infrastructure Multimedia 49 — 49 —

Department of Primary Industries, Water & Environment 194 38 194 38

Agriculture Victoria — 30 — 30

Department of Justice 165 134 165 134

Department of Victorian Communities 116 — 116 —

Beyond Blue 267 75 267 75

Catchment Management Authority 428 112 428 112

Other 126 120 126 120

6,798 3,735 6,798 3,735

2.3 FEES AND CHARGES

Course fees and charges

Fee-paying overseas students 58,899 43,973 58,899 43,973

Fee-paying domestic postgraduate students 17,974 13,798 17,974 13,798

Fee-paying domestic undergraduate students 5,106 4,507 5,106 4,507

Fee-paying domestic non-award students 5,773 3,685 5,773 3,685

87,752 65,963 87,752 65,963

Other fees and charges

Student accommodation fees 5,975 5,609 5,975 5,609

Rental income 1,748 1,740 1,748 1,737

Educational materials fees 12,889 13,813 12,889 13,813

Examination fees 2,416 3,665 2,416 3,665

General service fees 5,683 5,328 5,683 5,328

Course delivery fees 3,589 2,333 3,589 2,333

Parking fees 1,752 1,547 1,752 1,547

Other fees 2,975 2,222 3,304 2,522

37,027 36,257 37,356 36,554

Total fees and charges 124,779 102,220 125,108 102,517

2.4 INVESTMENT INCOME

Interest 4,461 3,872 4,428 3,861

Interest received from controlled entities — — 78 143

Dividends 365 545 365 545

Unrealised gain on investments 3 2,892 851 2,892 851

7,718 5,268 7,763 5,400




2004 2003 2004 2003$000's $000's $000's $000's

2.5 CONSULTANCY AND CONTRACT RESEARCHConsultancy 6,856 6,670 3,071 2,931 Research 8,903 8,106 8,903 8,106

15,759 14,776 11,974 11,037

2.6 OTHER REVENUESales and commercial income 16,271 10,475 10,803 8,817 Donations and bequests 5,257 6,507 5,257 6,507 Scholarship and prizes 24 124 24 124 Advertising income 871 819 — — Subscriptions 2,595 2,425 96 118 Convention income 2,952 2,355 — 5 Conference facility hiring 762 467 762 467 Commercial grants 489 961 489 961 Training 1,364 1,206 — — Proceeds from sale of property, plant and equipment 4,496 6,958 4,496 6,958 Proceeds from sale of investments — 4,796 — 4,796 Sales proceeds minor equipment 242 75 237 47 Contributions from learning institutions 312 468 312 468 Other 10,192 7,855 9,798 7,640

45,827 45,491 32,274 36,908

2.7 EMPLOYEE BENEFITS

AcademicSalaries 71,269 64,022 71,269 64,022 Contributions to superannuation and pension schemes:

Emerging cost—excess over 14% 5,797 5,239 5,797 5,514 Funded 9,882 8,730 9,882 8,730 Non-funded — 32 — 32

Payroll tax 4,502 4,072 4,502 4,072 WorkCover 624 524 624 524 Long service leave 1,064 (261) 1,064 (261)Annual leave 660 342 660 342

93,798 82,700 93,798 82,975

Non-academicSalaries 85,478 77,612 77,109 70,541 Contributions to superannuation and pension schemes:

Emerging cost — excess over 14% 6,272 6,351 6,272 6,076 Funded 10,575 9,250 10,467 9,155 Non-funded (1) 35 (1) 35

Payroll tax 5,340 4,823 4,872 4,337 WorkCover 648 511 605 474 Long service leave 1,266 (260) 1,152 (287)Annual leave 821 391 714 377 Other 3,781 3,157 3,118 2,449

114,180 101,870 104,308 93,157

Total academic and non-academic employee benefits 207,978 184,570 198,106 176,132

Deferred employee benefits for superannuation (4,980) (9,214) (4,980) (9,214)

Total employee benefits 202,998 175,356 193,126 166,918




2004 2003 2004 2003$000's $000's $000's $000's

2.8 DEPRECIATION AND AMORTISATION

DepreciationBuildings 7,795 7,636 7,795 7,636 Leasehold improvements 585 163 583 161 Equipment and furniture 8,097 7,044 7,803 6,471 Motor vehicles 1,256 1,091 1,256 1,091 Library holdings 6,351 5,577 6,351 5,577 Finance leases 36 164 36 164

24,120 21,675 23,824 21,100

AmortisationAmortisation—deferred development and implementation costs 2,326 3,213 2,194 3,169 Amortisation—intangible assets 346 214 — —

2,672 3,427 2,194 3,169

26,792 25,102 26,018 24,269

2.9 REPAIRS AND MAINTENANCEBuildings and grounds—maintenance and repairs 11,523 9,457 11,523 9,457 Buildings and grounds—refurbishment and alterations 4,080 3,533 3,834 3,843 Equipment—maintenance and repairs 3,643 3,436 3,599 3,396 Motor vehicles—maintenance and repairs 156 100 118 93

19,402 16,526 19,074 16,789

2.10 BAD AND DOUBTFUL DEBTSBad debts written off 14 344 14 334 Movement in provision for doubtful debts (167) 357 (147) 312

(153) 701 (133) 646

2.11 OTHER EXPENSESAdvertising, marketing and promotional expenses 7,048 5,995 6,557 5,712 Book value of non-current investment sold — 4,971 — 4,971 Communication costs 5,903 6,680 5,671 6,478 Consultants and contractors 10,233 9,178 8,165 8,165 Copying, printing, stationery and consumables 7,277 8,713 7,110 8,558 Course materials 1,166 1,031 1,166 1,030 Direct project costs 15,961 16,132 16,090 16,132 Equipment costs 4,106 4,568 3,721 4,356 Fringe benefits tax 1,019 876 901 819 Library expenses 2,910 1,947 2,905 1,941 Non-capitalised equipment 3,081 3,388 3,062 3,377 Operating lease rentals 7,326 6,805 6,546 6,081 Provision for diminution in value of other investments 465 — 465 — Provision for diminution in value of investments in controlled entities — — 2,135 5,091 Rates and energy costs 3,634 3,313 3,596 3,263 Scholarships, grants and prizes 9,031 7,612 9,031 7,612 Staffing and related costs 12,961 11,190 11,903 10,285 Student expenses 10,708 9,064 10,708 9,064 Written-down value of disposed property, plant and equipment 6,286 8,788 6,123 8,756 Other 8,122 3,142 5,639 880

117,237 113,393 111,494 112,571




2004 2003 2004 2003Note $000's $000's $000's $000's

3 CASH ASSETSCash at bank 8,075 3,235 5,213 3,061 Cash on hand 56 52 55 51 Managed fund 55,070 76,303 55,070 76,303 Income securities 5,397 7,376 5,397 7,376 Bank term deposits — 106 — 106

68,598 87,072 65,735 86,897

4 RECEIVABLES

CURRENTTrade debtors 13,255 15,090 12,444 13,292 Provision for doubtful debts (670) (845) (640) (795)

12,585 14,245 11,804 12,497 Government grants receivable — 40 — 40 Deferred government contribution for superannuation 12,610 12,241 12,610 12,241 Accrued income 333 1,915 325 1,912 Prepayments 3,482 3,307 3,021 3,067 GST recoverable 1,631 1,061 1,652 1,027 Owing by other entities 2,793 27 2,793 27

33,434 32,836 32,205 30,811

NON-CURRENTDeferred government contribution for superannuation 118,256 123,605 118,256 123,605 Owing by other entities 80 2,830 80 2,830 Owing by controlled entities — — 3,696 2,714 Provision doubtful debt—controlled entities — — (2,715) (2,701)

118,336 126,435 119,317 126,448

151,770 159,271 151,522 157,259

5 INVENTORIESStock on hand at cost 161 518 161 518

161 518 161 518

6 ASSETS HELD FOR RESALELand held for resale 1,259 1,000 1,259 1,000

1,259 1,000 1,259 1,000

7 OTHER FINANCIAL ASSETS

INVESTMENTSShares portfolio—market value 5,335 4,713 5,335 4,713 Other 1,147 472 1,147 472 Shares in controlled entities 23 — — 11,096 9,096 Provision for diminution in value of other investments (465) — (465) — Provision for diminution in value of investments in controlled entities — — (10,226) (8,091)

6,017 5,185 6,887 6,190




2004 2003 2004 2003Note $000's $000's $000's $000's

8 PROPERTY, PLANT AND EQUIPMENT

LAND

At independent valuation 2004 8(a) 105,235 — 105,235 —

At independent valuation 2002 — 86,485 — 86,485

At cost — 330 — 330

105,235 86,815 105,235 86,815

BUILDINGS

At independent valuation 2004 8(a) 371,555 — 371,555 —

At independent valuation 2002 — 352,121 — 352,121

At cost — 10,326 — 10,326

Accumulated depreciation — (7,635) — (7,635)

Work in progress 36,812 8,291 36,812 8,291

408,367 363,103 408,367 363,103

LEASEHOLD IMPROVEMENTS

At cost 2,936 2,815 2,936 2,792

Accumulated amortisation (785) (207) (785) (202)

2,151 2,608 2,151 2,590

EQUIPMENT AND FURNITURE

At cost 63,742 57,030 62,196 55,282

Accumulated depreciation (37,341) (33,524) (35,919) (32,264)

26,401 23,506 26,277 23,018

MOTOR VEHICLES

At cost 9,169 8,522 9,169 8,522


7,704 7,404 7,704 7,404

LIBRARY HOLDINGS

At cost 65,170 58,030 65,170 58,030


45,369 44,132 45,369 44,132

ART COLLECTION

At independent valuation 2003 8(b) 5,038 5,038 5,038 5,038

At cost 169 — 169 —

5,207 5,038 5,207 5,038

FINANCE LEASES—EQUIPMENT

At cost 116 1,396 116 1,396

Accumulated depreciation (101) (1,300) (101) (1,300)

15 96 15 96

600,449 532,702 600,325 532,196



8 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

(a) The land and buildings were valued by Craig Cunningham & Co (Real Estate) Pty Ltd at 31 December 2004. The valuation was on the basis of open market value of land and buildings concerned in their existing use.

(b) The art collection was valued by McWilliam & Associates Pty Ltd at 31 December 2003. The valuation was on the basis of replacement values. These valuations are in accordance with the University's policy of obtaining an independent valuation of non-current assets every three years or if there is a material movement in their values.

(c) The carrying amount, $95,000, of building under Certificate of Title Volume 9145 Folio 537 is pledged to secure mortgage monies advanced by the Commonwealth Government for the childcare centre at the Warrnambool campus.

MOVEMENTS IN CARRYING AMOUNTS

Balance at beginning of year

Additions Disposals Depreciation expense

Revaluation/Transfers

Carrying amount at end of year

$000's $000's $000's $000's $000's $000's

Consolidated

Land 86,815 1,138 — — 17,282 105,235

Buildings 363,103 33,791 394 7,795 19,662 408,367

Leasehold improvements 2,608 143 15 585 — 2,151

Equipment and furniture 23,506 11,266 319 8,097 45 26,401

Motor vehicles 7,404 6,074 4,518 1,256 — 7,704

Library holdings 44,132 8,628 1,040 6,351 — 45,369

Artworks 5,038 169 — — — 5,207

Finance leases—equipment 96 — — 36 (45) 15

532,702 61,209 6,286 24,120 36,944 600,449

University

Land 86,815 1,138 — — 17,282 105,235

Buildings 363,103 33,791 394 7,795 19,662 408,367

Leasehold improvements 2,590 144 — 583 — 2,151

Equipment and furniture 23,018 11,188 171 7,803 45 26,277

Motor vehicles 7,404 6,074 4,518 1,256 — 7,704

Library holdings 44,132 8,628 1,040 6,351 — 45,369

Artworks 5,038 169 — — — 5,207

Finance leases—equipment 96 — — 36 (45) 15

532,196 61,132 6,123 23,824 36,944 600,325



Consolidated University2004 2003 2004 2003

$000's $000's $000's $000's

9 DEFERRED DEVELOPMENT AND IMPLEMENTATION COSTS

DEFERRED DEVELOPMENT COSTS

Student information system 11,714 11,714 11,714 11,714

Callista research system 220 220 — —

11,934 11,934 11,714 11,714

Accumulated amortisation (11,565) (10,695) (11,345) (10,607)

369 1,239 369 1,107

DEFERRED IMPLEMENTATION COSTS

Student information system 4,868 4,868 4,868 4,868

Human resources system 405 405 405 405

Oracle financials system 4,923 4,923 4,923 4,923

10,196 10,196 10,196 10,196

Accumulated amortisation (8,047) (6,591) (8,047) (6,591)

2,149 3,605 2,149 3,605

2,518 4,844 2,518 4,712

10 INTANGIBLE ASSETS

Management rights 1,072 1,168 — —

Accumulated amortisation (1,072) (822) — —

— 346 — —

11 PAYABLES

CURRENT

Creditors and accrued expenses 26,354 26,210 26,243 26,032

Income received in advance 15,193 20,199 13,060 17,542

Owing to controlled entities — — 1,344 2,018

41,547 46,409 40,647 45,592

NON-CURRENT

Income received in advance 107 429 — —

107 429 — —

41,654 46,838 40,647 45,592




2004 2003 2004 2003Note $000's $000's $000's $000's

12 INTEREST BEARING LIABILITIES

CURRENT

Unsecured borrowings

—Bank overdraft — 60 — —

—Bank loans 2,109 1,938 2,109 1,938

—DEST loan 3,657 293 3,657 293

—Finance leases 19 36 71 36 71

Secured by mortgage

—Other 9 9 9 9

5,811 2,371 5,811 2,311

NON-CURRENT

Unsecured borrowings

—Bank loans 21,989 24,099 21,989 24,099

—DEST loan — 3,365 — 3,365

—Finance leases 19 3 39 3 39

Secured by mortgage

—Other 86 95 86 95

22,078 27,598 22,078 27,598

Due later than one year and not later than two years 2,296 5,520 2,296 5,520

Due later than two years and not later than three years 2,496 2,295 2,496 2,295

Due later than three years and not later than five years 4,859 5,198 4,859 5,198

Due later than five years and not later than ten years 11,583 12,155 11,583 12,155

Due later than ten years 844 2,430 844 2,430

22,078 27,598 22,078 27,598

27,889 29,969 27,889 29,909

The carrying amount, $95,000, of building under Certificate of Title Volume 9145 Folio 537 is pledged to secure mortgage monies advanced by theCommonwealth Government for the childcare centre at the Warrnambool campus.




2004 2003 2004 2003$000's $000's $000's $000's

13 EMPLOYEE ENTITLEMENTS

CURRENT

Annual leave 13,048 11,575 12,432 11,062

Long service leave 2,219 1,988 2,167 1,947

Deferred employee benefits for superannuation 12,610 12,241 12,610 12,241

27,877 25,804 27,209 25,250

NON-CURRENT

Long service leave 19,979 17,897 19,502 17,523

Deferred employee benefits for superannuation 118,256 123,605 118,256 123,605

Unfunded superannuation liability—SERB 289 310 289 310

138,524 141,812 138,047 141,438

166,401 167,616 165,256 166,688

The following rates per note 1(o) have been used to discount long service leave entitlements:

Service Year 2004 2003% %

Wage inflation rate 4.50 4.50

Discount rates 17+ — —

16 5.16 5.30

15 5.07 5.28

14 5.07 5.35

13 5.15 5.45

12 5.20 5.53

11 5.24 5.56

10 5.27 5.57

9 5.29 5.59

8 5.31 5.59

7 5.32 5.60

6 5.34 5.61

0-5 5.36 5.62


2004 2003 2004 2003$000's $000's $000's $000's

14 CURRENT TAX LIABILITIES

Provision for income tax 142 142 — —



15 ASSET REVALUATION RESERVE

MOVEMENTS IN CARRYING AMOUNTS

Balance at beginning of year

Increase (Decrease) on Revaluation

Carrying amount at end of year

$000's $000's $000's

Consolidated

Land 85,444 17,282 102,726

Buildings 216,834 19,662 236,496

Art works 3,475 — 3,475

Investments 1,563 616 2,179

307,316 37,560 344,876

University

Land 85,444 17,282 102,726

Buildings 216,834 19,662 236,496

Art works 3,475 — 3,475

Investments 1,563 616 2,179

307,316 37,560 344,876

16 ACCUMULATED FUNDS


2004 2003 2004 2003$000's $000's $000's $000's

Balance at beginning of year 239,057 217,620 239,267 217,848

Net profit from ordinary activities after income tax expense 10,753 21,437 10,472 21,419

Balance at end of year 249,810 239,057 249,739 239,267



Consolidated University2004 2003 2004 2003

$000's $000's $000's $000's17 STATEMENT OF CASH FLOWS

RECONCILIATION OF CASHCash at bank and on hand 8,131 3,287 5,268 3,112 Managed fund 55,070 76,303 55,070 76,303 Income securities 5,397 7,376 5,397 7,376 Bank term deposits — 106 — 106 Bank overdraft — (60) — —

68,598 87,012 65,735 86,897

RECONCILIATION OF NET CASH PROVIDED BY/(USED IN)OPERATING ACTIVITIES TO OPERATING RESULTNet profit from ordinary activities after income tax expense 10,753 21,437 10,472 21,419 Add non-cash itemsDepreciation and amortisation 26,792 25,102 26,018 24,269 Donations for library holdings (4,761) (5,884) (4,761) (5,884)Donations for art works (56) (74) (56) (74)Less items classified as investing activitiesLoss/(profit) on disposal of property, plant and equipment 1,790 1,830 1,627 1,798 Provision for diminution of other non-current investments 465 — 465 — Provision for diminution of investments in controlled entities — — 2,135 5,091 Loss/(profit) on sale of investments — 175 — 175 Decrease/(increase) in:Current assetsTrade debtors 1,660 3,592 693 2,327 Government grants receivable 40 233 40 233 Accrued income 1,582 (1,791) 1,587 (1,813)Prepayments (175) 56 46 12 GST recoverable (570) (406) (625) (238)Owing by other entities (16) (21) (16) (21)Owing by controlled entities — — — 514 Inventories 357 5 357 5 Assets held for resale (259) — (259) — Non-current assetsOwing by controlled entities — — (968) 6 Deferred government contribution for superannuation 4,980 9,214 4,980 9,214 Increase/(decrease) in:Current liabilitiesCreditors and accrued expenses 144 3,525 211 3,859 Income received in advance (5,006) 8,973 (4,482) 9,738 Owing to controlled entities — — (674) 2,018 Employee benefits 2,073 643 1,959 671 Non-current liabilitiesIncome received in advance (322) 172 — — Employee benefits 1,713 (437) 1,610 (461)Deferred employee benefits for superannuation (4,980) (9,214) (4,980) (9,214)Unfunded superannuation liability—SERB (21) 46 (21) 46 Net cash provided by operating activities 36,183 57,176 35,358 63,690

NON-CASH INVESTING ACTIVITIESDuring the year the University received donations for library

holdings and art works amounting to:Library holdings 4,761 5,884 4,761 5,884 Art works 56 74 56 74

4,817 5,958 4,817 5,958



18 SUPERANNUATION

Deakin University has a number of present and former staff who are members of the Victorian State Superannuation Fund and in respect of whom defined benefits are payable on termination of employment. As at 30 June 2004, the Victorian State Superannuation Fund was carrying total liabilities for member benefits in excess of the value of the fund’s assets. Hence, unfunded superannuation liabilities exist which are recognised in the financial statements of the fund. The notional share of this public sector employee superannuation fund’s unfunded liabilities attributable to Deakin University, as assessed by the fund as at 30 June 2004, amounted to $130,866,000 (2003 - $135,846,000). Unfunded liabilities are met by the Commonwealth Government.


2004 2003 2004 2003$000's $000's $000's $000's

(a) Amounts receivable from the Commonwealth Government

Receivable within 12 months 12,610 12,241 12,610 12,241

Receivable later than 12 months 118,256 123,605 118,256 123,605

Total 130,866 135,846 130,866 135,846

(b) Unfunded superannuation liability

Payable within 12 months 12,610 12,241 12,610 12,241

Payable later than 12 months 118,256 123,605 118,256 123,605

Total 130,866 135,846 130,866 135,846

(c) During the 2004 year Deakin University's contributions to the various funds are set out below. There were no outstanding employer contributions as at 31 December 2004 (2003–Nil).

The University contributes to a number of superannuation funds for its employees as follows:

Employer Contribution Ratio Employer: Employee

Contributions

2004 2003$000's $000's

UniSuper Defined Benefit/Investment Choice Plan (DBP/ICP) 14,922 13,034 2 : 1

UniSuper Award Plus Plan (APP) 6,756 5,888 1 : 0

State Superannuation Fund 12,611 12,247 —

Superannuation Trust of Australia (STA) 617 510 1 : 0

Australian Retirement Fund 35 40 1 : 0

Health Super 15 13 3 : 1

National Mutual 4 1 2 : 1

Construction & Building Unions Superannuation 40 12 1 : 0

Wycombe Superannuation Fund 14 5 1 : 0

State Employees Retirement Benefits Fund (SERB) 20 21 —

35,034 31,771 —

There was no other unfunded superannuation liability for any other scheme.



18 SUPERANNUATION (CONTINUED)

UniSuper has advised that at 30 June 2004 the assets of the Defined Benefit Plan (DBP) are greater than the liabilities by $16,852,949 (2003: $6,418,502). UniSuper Vested Member Benefits $156,061,912 (2003: $140,760,766), Accrued Member Benefits $134,247,671 (2003: $117,616,751) and Estimated Net Market Value of Assets $151,100,620 (2003: $124,035,253). The accrued benefits have been calculated as the present value of expected future payment of benefits to the members which arise from membership of the Fund up to the reporting date, determined using the actuary's current expectations of earnings of the Fund's assets, future inflation, salary levels and other relevant assumptions.

The adoption of International Accounting Standards for reporting periods beginning on or after 1 January 2005 means that, in future periods, the provision of information relating to employee superannuation entitlements will be driven by the new Australian accounting standard AASB 119 — Employee Benefits.

The new standard is based on a substantially different methodology to the AASB1028 / AAS30 and the current method of allocating assets and benefit liabilities to particular institutions will no longer be appropriate. As a result, the provision of specific information on an individual employer basis (as above) by UniSuper becomes impractical as there is no consistent and reliable basis for allocating the liabilities, assets and costs to individual institutions. Consequently, UniSuper intends to adopt the multi employer provisions of this new standard. Therefore, for the 2005 year end and all future periods, UniSuper will only be providing the 'additional information detailing the overall position of the fund' that employers will require to supplement their reporting on a defined contribution basis under the multi employer provisions of AASB 119.


2004 2003 2004 2003Note $000's $000's $000's $000's

19 COMMITMENTS

At the reporting date the following contracts for capital expenditure had been entered into:

Within one year 19,342 7,746 19,342 7,746

Later than one year and not later than two years 1,086 53 1,086 53

Later than two years and not later than five years 152 159 152 159

Later than five years 125 185 125 185

20,705 8,143 20,705 8,143

At the reporting date the following contracts for other expenditure had been entered into:

Within one year 1,729 1,328 1,672 1,271

Later than one year and not later than two years 1,812 1,313 1,760 1,256

Later than two years and not later than five years 4,524 4,199 4,524 4,147

Later than five years 521 1,023 521 1,023

8,586 7,863 8,477 7,697

At the reporting date the following obligations under operating leases, which are not shown as liabilities, were in effect:

Within one year 4,336 3,494 4,058 3,353

Later than one year and not later than two years 2,740 2,275 2,501 2,160

Later than two years and not later than five years 1,065 1,090 877 938

8,141 6,859 7,436 6,451

At the reporting date the following obligations under finance leases, and which are shown as liabilities, were in effect:

Within one year 37 75 37 75

Later than one year and not later than two years 3 37 3 37

Later than two years and not later than five years — 3 — 3

Minimum lease payments 40 115 40 115

Less: future finance charges (1) (5) (1) (5)

12 39 110 39 110



20 RESPONSIBLE PERSONS

Name of responsible persons

For the purposes of the Victorian Financial Management Act 1994, the Victorian Minister of Education and Training, the Hon. Lynne Kosky, MP, and members of the University Council are the responsible persons of the University. The relevant remuneration of the Minister is included in the financial statements of the Victorian Department of Premier and Cabinet. Members of the University Council received no remuneration for services rendered as members of Council. Council members during 2004 were R.H. Searby (Chancellor), S.A. Walker (Vice-Chancellor and President), B.U. Crassini (Chair of Academic Board), P.C. Turner, A.J. Kloeden, D.F. Jones, M.T. Prendergast, M.L. Edmond, D.M. Morgan, L. Forsyth, B.R. Jamison, J.D. Maddock, M. Rimmer, A.E. Fairley, S. De Gilio, M.J. Dowling, P.H. Reid, J.M. Lightowlers, D.J. Gunning, D.A. Lyell and B.G. McKenzie.

Consolidated

2004 2003

$000's $000's

Remuneration received or due and receivable from the University and its controlled entities by the responsible persons 921 776

Consolidated

2004 2003

Number of responsible persons whose remuneration from the University and its controlled entities were within the following bands:

Nil to $9,999 16 16

$60,000 to $69,999 1 2

$70,000 to $79,999 1 —

$130,000 to $139,999 — 2

$150,000 to $159,999 2 —

$370,000 to $379,999 — 1

$470,000 to $479,999 1 —

Includes all non-cash benefits and payments to responsible persons who have terminated employment with the University. There were no other transactions with responsible persons or related parties.



Consolidated

21 EXECUTIVE OFFICERS' REMUNERATION

2004 2003$000's $000's

Remuneration received or due and receivable from the University and its controlled entities by executive officers whose remuneration exceeded $100,000 6,696 5,325

2004 2003Number of executive officers whose remuneration from the University and its controlled entities were within the following bands

$100,000 to $109,999 — 1

$110,000 to $119,999 1 —

$120,000 to $129,999 2 —

$130,000 to $139,999 1 3

$140,000 to $149,999 7 2

$150,000 to $159,999 — 3

$160,000 to $169,999 3 2

$170,000 to $179,999 3 4

$190,000 to $199,999 3 5

$200,000 to $209,999 5 3

$210,000 to $219,999 2 —

$220,000 to $229,999 1 1

$230,000 to $239,999 1 2

$240,000 to $249,999 1 1

$250,000 to $259,999 2 —

$260,000 to $269,999 1 —

$300,000 to $309,999 1 —

$350,000 to $359,999 1 —

$450,000 to $459,999 — 1

Includes all non-cash benefits and payments to staff who have terminated employment with the University.

Consolidated

2004 2003$000's $000's

22 REMUNERATION OF AUDITORS

Amounts received, or due and receivable, by the auditors for auditing the accounts and consolidated accounts of Deakin University and the accounts of each of its controlled entities

Auditor-General of Victoria

—Deakin University 73 71

—Controlled entities 35 17



23 CONTROLLED ENTITIES

The Deakin University Act 1974, Section 34 permits the University to form limited liability companies. At the reporting date the University controlled the following entities:

Entity Country of incorporation

Principal activity Ownership interest

2004 2003

Australian Human Resources Institute Pty Ltd (formerly Australasian Human Resources Institute Pty Ltd)

Australia Professional association 100% 100%

Callista Software Services Pty Ltd Australia Computer software services 100% 100%

Deakin Networks Pty Ltd Australia Non operating 100% 100%

DeakinPrime USA USA Non operating 100% 100%

Unilink Limited Australia Consultancy services 100% 100%

The financial statements of the controlled entities have been audited by the Auditor-General of Victoria.

Statement of Financial Performance

Entity Total Revenue Total Expenditure Net Profit/(Loss) after Tax Expense

2004 2003 2004 2003 2004 2003$000's $000's $000's $000's $000's $000's


8,327 6,873 7,768 6,658 559 215

Callista Software Services Pty Ltd 11,633 7,840 13,768 10,997 (2,135) (3,157)

Deakin Networks Pty Ltd — 533 — 533 — —

DeakinPrime USA 6 61 20 201 (14) (140)

Unilink Limited 9,508 7,948 9,508 7,948 — —

29,474 23,255 31,064 26,337 (1,590) (3,082)

Statement of Financial Position

(a) Assets

Entity Current Assets Non-Current Assets Total Assets

2004 2003 2004 2003 2004 2003Note $000's $000's $000's $000's $000's $000's


(b) 2,540 1,295 196 640 2,736 1,935

Callista Software Services Pty Ltd (c) 3,524 3,582 69 242 3,593 3,824

Deakin Networks Pty Ltd — — — — — —

DeakinPrime USA — 15 — 5 — 20

Unilink Limited — — — — — —

6,064 4,892 265 887 6,329 5,779



23 CONTROLLED ENTITIES (CONTINUED)

(b) Liabilities

Entity Current Liabilities Non-Current Liabilities Total Liabilities

2004 2003 2004 2003 2004 2003Note $000's $000's $000's $000's $000's $000's


2,426 2,197 57 44 2,483 2,241

Callista Software Services Pty Ltd (c) 1,217 2,060 1,506 759 2,723 2,819


DeakinPrime USA (d) 2,715 2,721 — — 2,715 2,721


6,358 6,978 1,563 803 7,921 7,781

(c) Equity and borrowings

Entity Equity Internal Borrowings External Borrowings

2004 2003 2004 2003 2004 2003Note $000's $000's $000's $000's $000's $000's


253 (306) — — — —

Callista Software Services Pty Ltd (a) 870 1,005 981 — — 60


DeakinPrime USA (a) (2,715) (2,701) 2,715 2,714 — —


(1,592) (2,002) 3,696 2,714 — 60

(a) Deakin University has provided a letter of comfort to the Directors of Callista Software Services Pty Ltd and DeakinPrime USA. The University has no plans to call in monies owing by these companies to the University and will continue to provide financial support under present terms and conditions to enable these companies to meet their day to day operating expenses.

(b) Current assets includes an amount owing by Deakin University of $1,344,367 (2003—$520,622).

(c) Current assets includes an amount owing by Deakin University in 2003 of $1,496,910 (2004—Nil). Current liabilities includes an amount owing to Deakin University of $981,024 (2003—Nil)).

(d) Current liabilities includes an amount owing to Deakin University of $2,715,027 (2003—$2,713,800).

Australian Human Resources Institute Pty Ltd is expected to continue trading profitably in 2005, building on the results achieved in 2004.

DeakinPrime USA has ceased trading.

Deakin Networks Pty Ltd has ceased trading.

Callista Software Services Pty Ltd has agreed in principle new licence agreements with 10 licensees for their continuing use of 'Callista' student management system. The revised arrangements provide adequate funding for the continuing development of the system and to ensure the functionality required to meet legislative requirements under ‘Backing Australia's Future’.



24 JOINT VENTURE OPERATIONS

Deakin University has entered into an agreement with Monash University and the Commonwealth Scientific and Industrial Research Organisation to establish the Victorian Centre for Advanced Material Manufacturing Consortium (VCAMM) for the provision of research, education, training and technology diffusion in materials manufacturing.

The parties have established and operate the Consortium as an unincorporated collaborative joint venture. Deakin University interest in the joint venture is 55.38%.

The Consortium will receive funding from the State of Victoria through the Technology and Innovation Initiative of up to $5 million.

The University's interest in assets employed and liabilities incurred in the above joint venture operations is detailed below. The amounts are included in the financial statements and consolidated financial statements under their respective asset and liability categories.


2004 2003 2004 2003$000's $000's $000's $000's

Current assets

Cash assets 447 241 447 241

Receivables 45 14 45 14

Total 492 255 492 255

Current liabilities

Payables 341 22 341 22

Total 341 22 341 22

Net assets 151 233 151 233



25 FINANCIAL INSTRUMENTS (a) Terms, conditions and accounting policies The University’s accounting policies, including the terms and conditions of each class of financial asset and financial liability, both recognised

and unrecognised at the balance date, are as follows:

Recognised financial instruments

Note Accounting policies Terms and conditions

(i) Financial assets

Cash at bank and on hand

3 Cash is carried at the principal amount. Cash is invested as funds permit at varying interest rates. The interest rate as at 31 December 2004 is 4.73% (2003—4.56%).

Managed fund 3 Managed funds are stated at market value as at balance date.

The weighted average return is 9.74% p.a. (2003—6.62% p.a.).

Income securities

3 Income securities are stated at market value as at balance date.

The weighted average interest rate is 8.10% (2003—8.27%).

Bank term deposits

3 Bank term deposits are stated at principal amount. The deposit matured on 6 February 2004.

Receivables—Trade Debtors

4 Receivables are carried at nominal amounts due less any provision for doubtful debts. A provision for doubtful debts is recognised when collection of the full nominal amount is no longer probable.

Credit sales are on 30 day terms.

Listed shares 7 Listed shares are stated at market value as at balance date. Dividend income is recognised when the dividends are received.

Listed shares held at balance date are fully paid ordinary shares and preference shares.

(ii) Financial liabilities

Payables 11 Liabilities are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the University. Income received in advance relates to amounts received or receivable at balance date which relate to future periods.

Trade liabilities are normally settled on 30 day terms.

Bank overdraft 12 Bank overdraft is stated as liability to bank. Facility available for $3 million overdraft. The interest rate as at 31 December 2004 is 9.10% (2003—9.10%).

Bank loans 12 The bank loans are carried at the principal amount. Interest is charged as an expense as it accrues except where capitalised as part of building projects.

The bank loans are repayable semi-annually with final instalments due on 5 August 2008, 15 November 2012, 1 July 2013, and 7 April 2015 respectively. The weighted average interest rate is 7.24% (2003—7.22%).

DEST loan 12 The DEST loan is stated at the principal amount plus accrued interest as at balance date. Interest is charged as an expense as it accrues.

The DEST loan is repayable bi-monthly with final instalment due on 22 December 2005. The interest rate is 0.00% (2003—2.30%).

Finance lease 12 The lease liability is accounted for in accordance with AASB 1008.

As at balance date, the University has finance leases with an average lease term of 3.8 years (2003—3.7 years). The average interest rate implicit in the leases is 5.96% (2003—5.92%).

Other 12 Principal amount of loan from the Department of Family and Community Services.

The loan from the Department of Family and Community Services is repayable in instalments on 1 January and 1 July each year, with the final instalment due on 1 July 2015. The loan is interest free and secured by the mortgage of the University’s building under Certificate of Title Volume 145 Folio 537.



25 FINANCIAL INSTRUMENTS (CONTINUED)

(b) Interest rate risk

The University’s exposure to interest rate risks and the effective interest rates of financial assets and financial liabilities, both recognised and unrecognised at balance date, are as follows:

Consolidated

Financial instruments

Floating interest rate

Fixed interest rate maturing in: Non-interest bearing

Total carrying amount per the statement of

financial position

Weighted average effective

interest rate1 year or less Over 1 to 5 years More than 5 years

2004$000’s

2003$000’s

2004$000’s

2003$000’s

2004$000’s

2003$000’s

2004$000’s

2003$000’s

2004$000’s

2003$000’s

2004$000’s

2003$000’s

2004%

2003%


Cash at bank and on hand

8,075 3,235 56 52 8,131 3,287 4.73% 4.56%

Managed fund

55,070 76,303 55,070 76,303 9.74% 6.62%

Income securities

5,397 7,376 5,397 7,376 8.10% 8.27%

Bank term deposits

— 106 — 106 — 0.65%

Receivables —Trade Debtors

12,585 14,245 12,585 14,245 — —

Listed shares 5,335 4,713 5,335 4,713 — —

Other 682 472 682 472 — —

Total financial assets

68,542 86,914 — 106 — — — — 18,658 19,482 87,200 106,502


Payables 41,654 46,838 41,654 46,838 — —

Bank overdraft

— 60 — 60 9.10% 9.10%

Bank loans 2,109 1,938 9,614 9,575 12,375 14,524 24,098 26,037 7.24% 7.22%

DEST loan 3,657 293 — 3,365 3,657 3,658 — 2.30%

Finance leases

36 71 3 39 39 110 5.96% 5.92%

Other 95 104 95 104 — —

Total financial liabilities

— 60 5,802 2,302 9,617 12,979 12,375 14,524 41,749 46,942 69,543 76,807



25 FINANCIAL INSTRUMENTS (CONTINUED) (c) Net fair values The aggregate net fair values of financial assets and financial liabilities, both recognised and unrecognised, at balance date, are as follows:

Total carrying amount as per the statement of financial position

Aggregate net fair value

2004$000’s

2003$000’s

2004$000’s

2003$000’s


Cash at bank and on hand 8,131 3,287 8,131 3,287

Managed fund 55,070 76,303 55,070 76,303

Income securities 5,397 7,376 5,369 7,339

Bank term deposits — 106 — 106

Receivables—Trade Debtors 12,585 14,245 12,585 14,245

Listed shares 5,335 4,713 5,309 4,690

Other 682 472 682 472

Total financial assets 87,200 106,502 87,146 106,442


Payables 41,654 46,838 41,654 46,838

Bank overdraft — 60 — 60

Bank loans 24,098 26,037 24,167 26,128

DEST loan 3,657 3,658 3,657 3,615

Finance leases 39 110 39 110

Other 95 104 70 74

Total financial liabilities 69,543 76,807 69,587 76,825

The following methods and assumptions are used to determine the net fair values of financial assets and liabilities Recognised financial instruments

Cash, cash equivalents and short-term investments: The carrying amount approximates fair value because of their short term to

maturity.

Trade receivables and payables: The carrying amount approximates fair value for current receivables. Non-current receivables are estimated by discounting future receivables to net present value using discount rates as advised by the Department of Treasury and Finance.

Short-term borrowings: The carrying amount approximates fair value because of their short term to maturity.

Long-term borrowings: The fair value of long-term borrowings is estimated by discounting future

payments to net present value using the actual rate charged to the University.

Non-current investments/securities: For financial instruments traded in organised financial markets, fair value is the current quoted market bid price for an asset or offer price for a liability, adjusted for transaction costs necessary to realise the asset or settle the liability. For investments where there is no quoted market price, a reasonable estimate of the fair value is determined by reference to the current market value of another instrument which is substantially the same or is calculated based on the expected cash flows or the underlying net asset base of the investment/security.



25 FINANCIAL INSTRUMENTS (CONTINUED)

Unrecognised financial instruments

Bank borrowing facility: Deakin University has available $40,000,000 of bank borrowing facilities, $20,000,000 maturing on 2/12/2019 and $20,000,000 maturing on 1/12/2021. These facilities are at a fixed rate of 6.17% and 6.36% respectively and can be drawn down at any time.

These borrowings are entered as Interest Rate Swaps contracts to borrow money in the future at stipulated interest rates. The objective in entering the interest rate swaps contracts is to protect the University against unfavourable interest rate movements for the anticipated future borrowing from the bank. Gains or losses unrecognised from interest rate swaps contracts. The purpose of the proposed borrowings will be to contribute to capital expenditure in future years.

(d) Credit risk exposures

The University’s maximum exposures to credit risk at balance date in relation to each class of recognised financial asset is the carrying amount of those assets as indicated in the Statement of Financial Position.

The University minimises concentrations of credit risk in relation to trade accounts receivable by undertaking transactions with a large number of customers within different industries. However, the majority of customers are concentrated in Australia. Credit risk in trade receivables is managed in the following ways: —payment terms are 30 days; —debt collection policies and procedures including use of a debt collection agency.



26 ACQUITTAL OF COMMONWEALTH GOVERNMENT FINANCIAL ASSISTANCE

26.1 TEACHING AND LEARNING

University only

Operating Grant Capital Development Pool Total

2004 2003 2004 2003 2004 2003$000’s $000’s $000’s $000’s $000’s $000’s

Financial assistance in cash during the reporting period (total cash received from the Commonwealth for the programmes)

91,766 100,579 1,049 — 92,815 100,579

Net accrual adjustments (182) (3,175) — — (182) (3,175)

Revenue for the period 91,584 97,404 1,049 — 92,633 97,404

Accrual surplus/(deficit) from the previous year — — — — — —

Total accrual revenue 91,584 97,404 1,049 — 92,633 97,404

Less accrual expenses (91,584) (97,404) (1,049) — (92,633) (97,404)

Accrual surplus/(deficit) for reporting period — — — — — —

26.2 HECS AND OTHER COMMONWEALTH LOAN PROGRAMMES

University only

HECS PELS BOTPLS Total

2004 2003 2004 2003 2004 2003 2004 2003$000’s $000’s $000’s $000’s $000’s $000’s $000’s $000’s


49,925 55,603 6,687 6,608 60 83 56,672 62,294

Net accrual adjustments 1,878 168 — — — — 1,878 168

Revenue for the period 51,803 55,771 6,687 6,608 60 83 58,550 62,462

Accrual surplus/(deficit) from the previous year

— — 872 (204) 43 25 915 (179)

Total accrual revenue 51,803 55,771 7,559 6,404 103 108 59,465 62,283

Less accrual expenses (51,803) (55,771) (7,921) (5,532) (100) (65) (59,824) (61,368)

Accrual surplus/(deficit) for reporting period

— — (362) 872 3 43 (359) 915



26 ACQUITTAL OF COMMONWEALTH GOVERNMENT FINANCIAL ASSISTANCE (CONTINUED)

26.3 SCHOLARSHIPS

University only

Australian postgraduate

awards— Pre 2002 funding

component

Australian postgraduate

awards —2002 onwards funding

component

International postgraduate

research

Commonwealth Education Costs

Scholarship

Commonwealth Accommodation

Scholarship

Total

2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003$000’s $000’s $000’s $000’s $000’s $000’s $000’s $000’s $000’s $000’s $000’s $000’s


198 505 1,258 877 247 100 170 — 316 — 2,189 1,482

Net accrual adjustments

— — — — — — — — — — — —

Revenue for the period 198 505 1,258 877 247 100 170 — 316 — 2,189 1,482

Accrual surplus / (deficit) from the previous year

(141) (32) 162 77 101 156 — — — — 122 201

Total accrual revenue 57 473 1,420 954 348 256 170 — 316 — 2,311 1,683

Less accrual expenses (227) (614) (1,216) (792) (276) (155) (170) — (316) — (2,205) (1,561)

accrual surplus/ (deficit) for reporting period

(170) (141) 204 162 72 101 — — — — 106 122

26.4 DEST RESEARCH

University only

Institutional Grants Scheme

Research Training Scheme

System Infrastructure Initiative

Research infrastructure

Total

2004 2003 2004 2003 2004 2003 2004 2003 2004 2003$000’s $000’s $000’s $000’s $000’s $000’s $000’s $000’s $000’s $000’s


2,901 2,953 7,404 7,535 — 775 1,463 1,237 11,768 12,500

Net accrual adjustments — — — — — — — — — —

Revenue for the period 2,901 2,953 7,404 7,535 — 775 1,463 1,237 11,768 12,500

Accrual surplus/(deficit) from the previous year

— — — — (3) (22) 694 506 691 484

Total accrual revenue 2,901 2,953 7,404 7,535 (3) 753 2,157 1,743 12,459 12,984

Less accrual expenses (2,901) (2,953) (7,404) (7,535) 3 (756) (2,157) (1,049) (12,459) (12,293)

Accrual surplus/(deficit) for reporting period

— — — — — (3) — 694 — 691



26 ACQUITTAL OF COMMONWEALTH GOVERNMENT FINANCIAL ASSISTANCE (CONTINUED)

26.5 AUSTRALIAN RESEARCH COUNCIL GRANTS

(a) Discovery

University only

Projects Fellowships Federation Fellowship Total

2004 2003 2004 2003 2004 2003 2004 2003$000’s $000’s $000’s $000’s $000’s $000’s $000’s $000’s


2,006 1,679 — — 156 — 2,162 1,679

Net accrual adjustments — — — — — — — —

Revenue for the period 2,006 1,679 — — 156 — 2,162 1,679


(90) (80) 7 7 — — (83) (73)

Total accrual revenue 1,916 1,599 7 7 156 — 2,079 1,606

Less accrual expenses (1,984) (1,689) (7) — (156) — (2,147) (1,689)

Accrual surplus / (deficit) for reporting period

(68) (90) — 7 — — (68) (83)

26.6 AUSTRALIAN RESEARCH COUNCIL

(b) Linkages

University only

Linkage— Infrastructure

Equipment & Facilities

Linkage—Special Research Initiatives

Linkage—International

Researcher Exchange

Projects (SPIRT) Total

2004 2003 2004 2003 2004 2003 2004 2003 2004 2003$000’s $000’s $000’s $000’s $000’s $000’s $000’s $000’s $000’s $000’s


— 616 40 — 41 97 1,993 2,152 2,074 2,865

Net accrual adjustments — — (40) 40 — — — — (40) 40

Revenue for the period — 616 — 40 41 97 1,993 2,152 2,034 2,905


13 — 40 — 69 44 707 546 829 590

Total accrual revenue 13 616 40 40 110 141 2,700 2,698 2,863 3,495

Less accrual expenses (13) (603) (31) — (77) (72) (1,904) (1,991) (2,025) (2,666)

Accrual surplus/ (deficit) for reporting period

— 13 9 40 33 69 796 707 838 829


The annual report of Deakin University is prepared in accordance with:

FMA Financial Management Act 1994 (Vic)

FRD Financial Reporting Directions

SD Standing Directors of the Minister for Finance issued under the Financial Management Act 1994 (Vic)

TEA 1993 Tertiary Education Act 1993 (Vic)

PAEC Decision of Public Accounts and Estimates Committee of Parliament

RUG Victorian Government response to the Review of University Governance

ESOS Education Services for Overseas Students Act 2000 (Cth)

DEST Department of Education, Science and Training

This index was prepared to facilitate identification of compliance with statutory disclosure requirements.

Clause Disclosure Page(s)

Report of operations

FRD 10 Compliance index 88–90

FRD 11 Disclosure of ex-gratia payments 74, 75

FRD 21(1)(a), (b), (c), (d) Disclosure of responsible persons and executive officers remuneration 74, 75

FRD 21(2)(a), (b), (c) Disclosure of remuneration of executive officers 75

FRD 22 SD 4.2(g) (h) General and financial information 3–87

SD 4.2 (j) Signature of Chancellor or nominee transmittal letter, 48

Date of meeting at which Council approved annual report, or date of delegated approval transmittal letter, 48

General information

FRD 22 Manner in which the University was established 4

FRD 22 Relevant Minister 4

FRD 22 Objectives, functions, powers and duties 5, 29

FRD 22 Nature and range of services, people and communities served 16, 17, 25

FRD 22 Administrative structure 26

FRD 22 Members of the Council 30–33

FRD 22 Occupants of senior offices and areas of responsibility 27, 28

FRD 22 Organisational chart 26, 37

FRD 22 Workforce data for current and previous year; statement on application of merit and equity principles 14

FRD 22 Statement on Occupational Health and Safety matters 14, 15

Compliance index


Financial year information

FRD 22 Summary of the financial results with comparative results for the preceding four years 23

FRD 22 Summary of significant changes in financial position 22

FRD 22 Operational objectives and performance including significant activities and achievements 4–25

FRD 22 Major changes or factors affecting the achievement of operational objectives 48

FRD 22 Events subsequent to balance date which may have a significant effect on operations in subsequent years 48

FRD 22 Consultancies in excess of $100,000 22

FRD 22 Consultancies less than $100,000 22

Other relevant information

FRD 22 Application and operation of the Freedom of Information Act 1982 (Vic) 44

FRD 22 Compliance with the Building Act 1993 (Vic) 47

FRD 22 Compliance with the Whistleblowers Protection Act 2001 (Vic) (section 104) 45

FRD 22 Statement that information listed in Appendix 1 is available on request to the relevant Minister 47

FRD 22 Implementation and compliance with National Competition policy 45

FRD 22 Summary of environmental performance 24

Additional information on request subject to the provision of the FOI Act

FRD 22 Declarations of pecuniary interests 35

FRD 22 Shares held by senior officers 47

FRD 22 Publications 47

FRD 22 Changes in prices, fees, charges, rates and levies 47

FRD 22 Major external reviews 47

FRD 22 Major research and development activities 10, 11

FRD 22 Overseas visits 47

FRD 22 Promotional, public relations and marketing activities 47

FRD 22 Occupational Health and Safety matters 14, 15

FRD 22 Industrial relations, accidents and disputes 47

FRD 22 List of major committees sponsored by the University 47


Superannuation liabilities and disclosure

FRD 23 Name and type of scheme 72

FRD 23 Basis for calculating superannuation contributions 72

FRD 23 Cost to the University for the scheme during the year 72

FRD 23 Amount of contributions to defined contribution schemes outstanding at balance date 72

FRD 23 Details of any loan to the University from the scheme —

FRD 23 If superannuation liabilities are recognised, details for each plan, accrued benefits, market value, etc.

72, 73

Additional information

s. 12I TEA 1993 Compulsory non-academic fees, subscriptions and charges 21

PAEC (December 1997) International initiatives and strategies 12

PSMEA ss 7 & 8 Employment processes and principles of conduct for public sector employees 14, 44

RUG Statement that public funds allocated to the purposes specified by the Government or other public funding body 22

RUG Council’s risk management strategy 42, 43

RUG Summary table of financial performance of the University’s associates and commercial ventures 76–78

ESOS Compliance with the Education Services for Overseas Students Act 2000 (Cth) (ESOS) 44

DEST Internal grievance and complaint procedures and complaints made to and investigated by the Ombudsman 46

DEST Website address for the current and previous Annual Reports 47

FMA 49(a), (b), (c), (d), (e) Financial statements

SD 4.2 (a) Prepared in accordance with Australian Accounting Standards (AAS and AASB standards) and other mandatory professional reporting requirements (including Urgent Issues Group Consensus Views and Statements of Accounting Concepts), Financial Reporting Directions and Business Rules 54, 86, 87

SD 4.2 (b) Comprised Statement of Financial Performance and Financial Position, Statement of Cash Flows and Notes to the financial statements 51–85

SD 4.2(c) Signed and dated by the Accountable Officer, CFAO and a member of the Responsible Body

86

SD 4.2 (d) Expressed in the nearest dollar 51

SD 4.2 (e) Reviewed and recommended by the Audit Committee or Responsible Body prior to finalisation and submission transmittal letter, 48

Deakin University

Geelong campus at Waurn Ponds

Pigdons Road Geelong Victoria Australia 3217 Phone: (03) 5227 1100 Fax: (03) 5227 2001

Geelong Waterfront campus

1 Gheringhap Street Geelong Victoria Australia 3217 Phone: (03) 5227 8100 Fax: (03) 5227 8188

Melbourne campus at Burwood

221 Burwood Highway Burwood Victoria Australia 3215 Phone: (03) 9244 6100 Fax: (03) 9808 9497

Melbourne campus at Toorak

336 Glenferrie Road Malvern Victoria Australia 3144 Phone: (03) 9244 5100 Fax: (03) 9244 5478

Warrnambool campus

PO Box 423 Warrnambool Victoria Australia 3280 Phone: (03) 5563 3100 Fax: (03) 5563 3531

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